# Commercial and Specialty Lines Glossary

> 28 terms from the Insurance book's Commercial and Specialty Lines part, each defined in a line and linked to the chapter that explains it.

- **Additional insured:** a party other than the named insured covered by an endorsement on the policy (in GL, ISO's CG 20 10, CG 20 37 and their blanket versions); a certificate saying so confers nothing without the endorsement ([Certificates of Insurance](https://www.syntaqx.com/books/insurance/certificates-of-insurance#additional-insured-endorsements)).
- **Approved Insurance Provider (AIP):** a private insurer that sells, services and adjusts federal crop insurance policies and shares their gains and losses with FCIC under the Standard Reinsurance Agreement ([Crop Insurance](https://www.syntaqx.com/books/insurance/crop-insurance#the-standard-reinsurance-agreement)).
- **Business owners policy (BOP):** a pre-packaged property and liability policy for small eligible businesses, rated by one algorithm on one form set ([The Commercial Lines Map](https://www.syntaqx.com/books/insurance/commercial-lines#bop-versus-package)).
- **Certificate of insurance (COI):** a form (usually ACORD 25) showing that policies exist, issued for information only; it cannot amend, extend or alter the coverage or confer rights beyond the policy ([Certificates of Insurance](https://www.syntaqx.com/books/insurance/certificates-of-insurance#what-a-certificate-is)).
- **Circular 570:** the US Treasury's list of companies certified as sureties and reinsurers on federal bonds, with each company's underwriting limitation ([Surety Bonds](https://www.syntaqx.com/books/insurance/surety#circular-570-and-the-underwriting-limitation)).
- **Claims-made policy:** a policy that covers claims first made during the policy period (or an extended reporting period) for wrongful acts after the retroactive date ([Professional & Management Liability](https://www.syntaqx.com/books/insurance/professional-and-management-liability#claims-made-mechanics)).
- **Claims-made relationship:** the period from the first claims-made policy with an insurer through its renewals, during which the retroactive date may not change in New York ([Professional & Management Liability](https://www.syntaqx.com/books/insurance/professional-and-management-liability#claims-made-mechanics)).
- **Commercial general liability (CGL):** liability coverage for bodily injury and property damage (Coverage A), personal and advertising injury (B) and medical payments (C), on ISO's CG 00 01 occurrence or CG 00 02 claims-made forms ([The Commercial Lines Map](https://www.syntaqx.com/books/insurance/commercial-lines#the-lines)).
- **Defense within limits:** a policy whose defense costs reduce the limit of liability, regulated in New York by minimum limits and a 50% cap ([Professional & Management Liability](https://www.syntaqx.com/books/insurance/professional-and-management-liability#defense-within-limits)).
- **Diligent search:** the surplus lines broker's documented attempt to place a risk with admitted insurers (three declinations in New York and California) before placing it non-admitted ([Excess & Surplus Lines](https://www.syntaqx.com/books/insurance/excess-and-surplus-lines#diligent-search)).
- **Excess and surplus lines (E&S):** insurance placed by a licensed surplus lines broker with an insurer not admitted in the home state but eligible there, free of rate and form filing ([Excess & Surplus Lines](https://www.syntaqx.com/books/insurance/excess-and-surplus-lines)).
- **Extended reporting period (tail):** time after a claims-made policy ends during which claims for earlier wrongful acts may still be made, automatic for 60 days in New York and offered for longer ([Professional & Management Liability](https://www.syntaqx.com/books/insurance/professional-and-management-liability#claims-made-mechanics)).
- **Federal Crop Insurance Corporation (FCIC):** the federal corporation, managed by USDA's Risk Management Agency, that offers, subsidizes and reinsures federal crop insurance ([Crop Insurance](https://www.syntaqx.com/books/insurance/crop-insurance)).
- **General indemnity agreement:** the contract by which a surety's principal and its owners agree to repay the surety for every loss and cost under its bonds and to post collateral on demand ([Surety Bonds](https://www.syntaqx.com/books/insurance/surety#indemnity-agreements)).
- **Loss run:** an insurer's report of an insured's claims, with paid, reserved and incurred amounts as of a valuation date, used by other insurers to underwrite the account ([The Commercial Lines Map](https://www.syntaqx.com/books/insurance/commercial-lines#loss-runs)).
- **Miller Act:** the federal law requiring performance and payment bonds on federal construction contracts above a threshold ($150,000 under the FAR) ([Surety Bonds](https://www.syntaqx.com/books/insurance/surety#federal-bonds-and-the-miller-act)).
- **Nonadmitted and Reinsurance Reform Act (NRRA):** the 2010 federal law making the insured's home state the only state that may tax, license the broker for and regulate a surplus lines placement ([Excess & Surplus Lines](https://www.syntaqx.com/books/insurance/excess-and-surplus-lines#the-home-state-rule-worked)).
- **Occurrence policy:** a policy that covers injury or damage happening during the policy period, whenever the claim is made ([The Commercial Lines Map](https://www.syntaqx.com/books/insurance/commercial-lines#occurrence-versus-claims-made)).
- **Penal sum:** the maximum amount a surety is liable for under a bond ([Surety Bonds](https://www.syntaqx.com/books/insurance/surety)).
- **Retroactive date:** the date before which wrongful acts are not covered by a claims-made policy ([Professional & Management Liability](https://www.syntaqx.com/books/insurance/professional-and-management-liability#claims-made-mechanics)).
- **Revenue protection:** a federal crop plan whose guarantee is the production guarantee times the greater of the projected and harvest prices, with production to count valued at the harvest price ([Crop Insurance](https://www.syntaqx.com/books/insurance/crop-insurance#plans-and-subsidy)).
- **Schedule rating:** a filed plan that credits or debits a commercial premium for risk characteristics within set maximums, chosen and justified by the underwriter ([The Commercial Lines Map](https://www.syntaqx.com/books/insurance/commercial-lines#how-commercial-rating-differs)).
- **Silent cyber:** exposure to cyber losses under policies that neither grant nor exclude them ([Cyber Insurance](https://www.syntaqx.com/books/insurance/cyber-insurance#silent-cyber)).
- **Stamping office:** the body in a state that receives, checks and records every surplus lines transaction and its tax ([Excess & Surplus Lines](https://www.syntaqx.com/books/insurance/excess-and-surplus-lines#stamping-offices-and-filing)).
- **Standard Reinsurance Agreement (SRA):** the annual agreement under which FCIC reinsures and subsidizes AIPs, with fund designations, retentions, loss-ratio bands and A&O subsidy ([Crop Insurance](https://www.syntaqx.com/books/insurance/crop-insurance#the-standard-reinsurance-agreement)).
- **State-backed cyber-attack exclusion:** a clause, mandatory in Lloyd's standalone cyber policies since March 31, 2023, excluding attacks attributed to a state that significantly impair its functioning or security ([Cyber Insurance](https://www.syntaqx.com/books/insurance/cyber-insurance#war-and-state-backed-attack-exclusions)).
- **Surety bond:** a three-party guarantee in which a surety promises an obligee that a principal will perform an obligation, with the principal liable to repay the surety ([Surety Bonds](https://www.syntaqx.com/books/insurance/surety)).
- **Underwriting limitation:** the largest single risk a Treasury-certified surety may write on its own, 10% of its paid-up capital and surplus ([Surety Bonds](https://www.syntaqx.com/books/insurance/surety#circular-570-and-the-underwriting-limitation)).

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