What does bind mean in insurance?

The term “ bind is a common one in the insurance world. It basically refers to the process of establishing the amount of coverage that an insurance policy will provide to the insured. Your insurance company will typically quote your premium in terms of a percentage of the estimated cost of your claim. All insurance companies are legally required to keep some reserve to cover losses. When your premium payments exceed the amount of money that the company has in its reserve, the company can use the reserve to pay your claim

What does bound mean in insurance terms?

When someone in your policy is covered by the "per occurrence" limit, this means that your payout for that specific claim will be capped. If you have $500,000 in liability coverage and the insured has two car accidents within the same year with the same driver, the insurer will pay $500,000 for the first accident, plus any additional costs. However, if the insured has four car accidents within the same year with the same driver, the insurer would pay $500,000 for the first

What does bound mean in life insurance?

The term bound is commonly used in the context of life insurance. The term refers to the maximum amount of money that your life insurance policy will pay out. If someone passes away, their beneficiaries will receive the death benefit, less any money that the policy's cash value has. The money that the beneficiary receives is known as the net of the death benefit.

What does bound mean in deed of trust?

When you take out a loan to buy a house, the lender will often require the homeowner to sign a deed of trust that grants the lender the right to take control of the house if the homeowner fails to repay the loan. The deed of trust states that the property is under the control of the lender until the loan is repaid in full.

What does bound mean in a will?

There are two types of bonds: absolute and contingent. An absolute bond is one that is valid even if the will is contested after the death. Contingent bonds, on the other hand, are only valid if the will is not successfully challenged. If the will is contested, the executor is liable for the loss.