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Insurance
| Term | Definition |
|---|---|
| Insurance | offers financial protection against possible loss |
| insurable interest | to insure some thing you must benefit by its existence an suffer (financially ) from its loss |
| utmost good faith | when applying for insurance, you must disclose all facts relating to the policy (be honest) |
| indemnity | a profit cannot be made from insurance |
| subrogation | once the insurance company company has paid compensation for any insured item, the right of ownership passes to the company |
| contribution | where the same risk is insured with more than one insurer they will divide the cost of the claim |
| premium | amount charged by an insurer in return for providing insurance e cover |
| compensation | financial payment made to the insured if they suffer an insured loss |
| material fact | anything that is likely to alter the decision to grant insurance or to affect the level of premium charged |
| assurance | protection against CERTAIN future loss |
| term policy | this is for a fixed time period and usually covers the duration of a loan or mortgage so that if the insured person dies while paying out a loan, any outstanding amount is paid off |
| endowment | pays a guaranteed amount on a specified date |
| whole life policy | pays compensation on the death of the insured |
| first party | person who takes out insurance |
| second party | the insurance company the first party is insured with |
| third party | any person or item that suffers loss caused by the first party |
| no claims bonus | discount on an insurance premium. it rewards the insured party for not making claims |
| loading | an extra amount added to the basic premium to cover increased risk |
| exclusions | risks that are not covered by insurance |
| policy excess | the amount of money you have have to pay for loss of any item. insurance pays the balance |
| insurance broker | helps you find the best policy and price for insurance |
| actuary | decides what premium should be charged based on various circumstances |
| agent | sells policies for insurance company |
| loss adjuster | investigates compensations claims and decides whether the claim is covered |
Created by:
NMaticha
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