Excess Judgment Loss

Categories: Insurance

Tell your friend what you really think of that neck tattoo she got in Vegas and she may not talk to you for a while. Excess judgement loss.

In financial terms, it has to do with additional funds an insurance has to pay out, usually a result of less than forthright business practices.

Your house burns down. Nothing suspicious, just bad luck. The insurance company takes its time investigating. Then it gives you the runaround. Finally, it turns down your claim, citing a fishy interpretation of the fine print.

You sue. Eventually, the court rules in your favor, demanding that the insurance company pay the money it owes you on the policy. In addition, the court orders an additional penalty, just because the company was so shifty in the way it handled the situation.

Excess judgement loss: 2bad4u.

Find other enlightening terms in Shmoop Finance Genius Bar(f)