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Insurance
Key words for insurance
| Term | Definition |
|---|---|
| Insurance | Offers financial protection against possible loss and is designed to place the insured person back in the financial position they were in before the loss. |
| Insurance policy | An insurance policy set out details of the types of losses covered and the amount of compensation to be paid |
| Premium | The amount charged by an insurer in return for providing insurance cover for a particular risk |
| Compensation | A financial payment made to an insured person if theey uffer an insured loss |
| Material Facts | A material fact is anything that is likely to alter the decision to grant insurance or to affect the level of premium charged. |
| Insurable Interest | To insure something you must benefit by it's existence and suffer from it's loss |
| Indemnity | A profit cannot be made from insurance. |
| Utmost Good Faith | When applying for insurance, all material facts must be disclosed to the insurance company |
| Contribution | Where the same risk is insured with more than one insurer they will divide the cost of the claim between them |
| Subrogation | Once an insurance company has paid compensation for any insured item, the right of ownership of that item passes to the insurance company |
| Assurance | Protection from future loss |
| Life Assurance | A type of assurance that pays out after death |
| First Person | The person that is being insured |
| Second Person | The insurance company insuring the first person |
| Third Person | Any person or item that suffers loss by the first person |
| No claims bonus | A discount on insurance premium that is a reward for not making any claims |
| Loading | Extra premium added on to insurance because of increased risk (E.G. An insurance company charging more for health insurance because of the person being insured having a heart disease) |
| Exclusion | A certain item or risk that are not insured |
| Policy | Details of the number of risks covered, the amount of compensation to be paid and the details of the policy |
| Policy excess | The amount of money the insured person must pay in the event of a loss. The balance is paid by the insurer |
| Actuary | |
| Agent | Sells policies on behalf of one insurance company |
| Insurance broker | Helps people choose the insurance that fits their needs and budget |
| Loss Adjuster | Recommends an amount of compensation to be paid when a loss has occurred |
| Risk | The likelihood of a loss happening and how costly it would be |
Created by:
cquin21
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