FIRST LOSS Meaning and
Definition
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First loss is a term typically used in the context of insurance and refers to an initial or early claim made by an insured party. It is the first financial setback or damage that an insured person or entity experiences, and it often carries significant implications for both the insured and the insurer.
In insurance policies, the first loss clause outlines the maximum amount or percentage of coverage that applies to the initial or earliest claim filed by the insured. This clause determines the precise extent of monetary protection provided by the policyholder in the event of a loss. Consequently, the first loss provision typically sets a cap on the liability or indemnification of the insurer, limiting the potential coverage available for future losses occurring after the initial one.
First loss is a crucial factor in underwriting decisions and the setting of insurance premiums. Insurance companies assess the first loss potential of an insured party or property to determine the appropriate coverage, risk levels, and monetary obligations. This estimation of initial risk helps insurance providers determine the premium amount, deductible, or excess required for the policy. A higher first loss potential generally translates to higher premiums or deductibles.
Overall, the concept of first loss in insurance denotes the initial claim made by an insured party, establishing the foundation for subsequent coverage and determining the financial parameters of the policy.
Common Misspellings for FIRST LOSS
- firs loss
- first liss
- first koss
- dirst loss
- cirst loss
- virst loss
- girst loss
- tirst loss
- rirst loss
- furst loss
- fjrst loss
- fkrst loss
- forst loss
- f9rst loss
- f8rst loss
- fiest loss
- fidst loss
- fifst loss
- fitst loss
- fi5st loss
Etymology of FIRST LOSS
The word "first loss" does not have a specific etymology as it is a combination of two distinct words.
"First" comes from the Old English word "fyrst" which means "foremost" or "earliest". It can be traced back to the Proto-Germanic word "furisto" and the Proto-Indo-European root "per" meaning "forward" or "through".
"Loss" originates from the Old English word "los" and is related to the Middle High German word "los" and Old Norse word "los", which mean "ruin" or "destruction". The exact origin of "loss" is uncertain but is believed to have developed from the Proto-Germanic word "*lausaz".
When combined, "first loss" refers to the initial or primary experience of losing something, typically used in the context of a financial or sporting event.
Similar spelling words for FIRST LOSS
- first-loss protection,
- first-loss policy,
- first-loss exposure.
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