Life Insurance Demystified: 2009

Monday, December 28, 2009

Life Insurance Glossary - Q

Tuesday, December 22, 2009

Package Policy
A combination of two or more individual polices into a single policy. A householders policy, for example, is a package policy.

Partial Disability
The result of an illness or injury which prevents an insured from performing on or more of the functions of his/her regular job

Particular Average
A term meaning an accidental and usually a partial loss suffered by one interest and not chargeable against others

Peril
The event insured against; the cause of possible loss

Personal Injury
In law, a term used to embrace a broad range of torts that includes bodily injury, libel, slander, discrimination and similar offences. Also a standard insurance coverage that protects against a more limited group of torts (false arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction, and libel, slander, or defamation)

Physical Damage
Damage to or loss of an automobile resulting from a named peril

Physical Hazard
A condition of the subject of insurance which creates or increases the chance of loss, such as structural defects, occupancy, or similar conditions

Pilferage
Petty theft, especially theft of articles in less than package lots.

Policy
The legal document issued by the company to the policyholder, which outlines the conditions and terms of the insurance; also called the policy contract for the contract

Policyholder
The person (or persons) whose risk of financial loss from an insured peril is protected by the policy.

Policyholder's funds
Monies set aside by insurers to cover outstanding liabilities to Policyholders. Also known as technical reserves

Policy Period
The term for which insurance remains in force, sometimes definite, sometimes not.

Policyholder's surplus
Amount over and above liabilities available for an insurer to meet future obligations to its policyholders

Policy Term
The period for which an insurance policy provides coverage

Policyholder
A person who pays a premium to an insurance company in exchange for the insurance protection provided by a policy of insurance

Pool
A risk sharing mechanism in which the members of a group agree to be collectively responsible for losses

Premium
The sum paid by a policyholder to keep an insurance policy in force. It is the amount paid to secure an insurance policy

Premium Notice
Notice of a premium due, sent out by the company or one of its agencies to an insured. Synonym for " Renewal Notice".

Principal
The applicant for, or subject of, insurance; the one from whom an agent derives his or her authority

Pro Rata Cancellation
Cancellation with a return of premium charged for the period of time the policy was in force equal to the ratio of the total premium to the total policy period

Product Liability Insurance
Protection against financial loss arising out of the legal liability incurred by a manufacturer, merchant, or distributor because of injury or damage resulting from the use of a covered product

Professional Indemnity
It is a cover granted to professionals like Doctors covering their legal liability for any claims arising out of professional misconduct

Property Insurance
Insurance providing financial protection against the loss of, or damage to, real and personal property caused by such perils as fire, theft, windstorm, hail, explosion, riot, aircraft, motor vehicles, vandalism, malicious mischief, riot and civil commotion, and smoke

Proposal
A person interested in taking out insurance has to make an offer by means of a proposal. This is an application for the cover required, or for obtaining quotations of the premium chargeable

Proposal Form
It is a form which is to be completed for securing an insurance policy

Proposer
Proposer is a person who proposes the insurance policy

Prospectus
A form, which is often part of the proposal form, giving details of the cover available with particulars of extra benefits and rebates

Protection and Indemnity (P & I) Insurance
Liability insurance coverage in an ocean marine policy

Provision for unexpired risks
Amount set aside on the balance sheet in addition to unearned premiums with respect to risks to be borne by the insurance undertaking after the end of the financial year, in order to pro-vide for all claims and expenses in connection with insurance contracts in force in excess of the related unearned premiums and any premiums receivable on those contracts

Provisions
The terms or conditions of an insurance policy

Proximate Cause
The dominating cause of loss or damage; an unbroken chain of events between the occurrence and damage

Public Liability/Third Party Liability
The insured's liability at law (excluding liability to an employee arising out of employer/employee relationship) to pay compensation for death, injury or illness sustained by any person or damage to property caused by explosion or collapse of boiler and pressure plant or use of lilting and handling plant

Punitive Damages
Damages awarded separately and in addition to the compensatory damages, usually on account of malicious or wanton misconduct, to serve as a punishment for the wrongdoer and possibly as a deterrent to others

Pure Risk
A condition in which there is the possibility of loss or no loss only.

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Saturday, December 12, 2009

Life Insurance Glossary - O

Obligatory Treaty
A reinsurance contract under which business must be ceded in accordance with contract terms and must be accepted by the reinsurer

Occupational Hazards
Occupations which expose the insured to greater than normal physical danger by the very nature of the work in which the insured is engaged, and the varying periods of absence from the occupation, due to the disability, that can be expected

Ombudsman
An authority established either by the company or the Government for the quick redressal of grievances

Open cover
Gives to insured automatic insurance protection so that there is no risk of any shipments remaining uninsured through oversight

Open Form
A continuous policy written on a reporting basis

Operative Clause
Defines the class and nature of business covered by a specific reinsurance treaty.

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Friday, December 4, 2009

Life Insurance Glossary - N

Named Perils Policy
Coverage in a property policy that provides protection against loss from only the perils specifically listed in the policy rather than protection from physical loss. Examples of named perils are fire, windstorm, theft, smoke, etc.

Negligence
Failure to use that care which a reasonable and prudent person would have used under the same or similar circumstance. Negligence may be constituted by acts of either omission or commission or both.

Net Premium
A portion of the premium rate designed to cover benefits of the policy, but not expenses, contingencies, or profit Net Premiums Earned Net premiums written adjusted for the increase or decrease during the year of the liability for unearned premiums

Net Premiums Written
This item represents gross premiums written (direct and reinsurance assumed) less reinsurance ceded

Net Retention
The final amount of insurance retained by the company after reinsuring such amounts as it did not wish to retain

No Claims Bonus
A reduction in the price of an insurance policy because no claims have been made on it

No-Fault
A type of insurance mechanism whereby the right to sue another party for damages caused by negligence is limited and, in exchange, expanded first party benefits are offered. Mainly used in Vehicles insurance Policy.

Nominee
Nominee is the person who is nominated to receive the amount under a policy and to give a valid discharge to the insurer on settlement of claim under a life insurance policy.

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Saturday, November 28, 2009

Life Insurance Glossary - M

Manual
A book of rates, rules, and coverages usually available for each kind of insurance

Margin of Solvency
The total assets of an insurance company must exceed its liabilities (other than share capital) by a relevant amount, known as the margin of solvency

Marine
Pertaining to the sea or to transportation: usually divided as to 'ocean marine' and 'inland marine'; the insurance covering transportation risks

Marine Insurance
A form of insurance primarily concerned with means of transportation and communication, and with goods in transit

Market Value
The price for which something would sell, especially the value of certain types of assets, such as stocks and bonds. It is based on what they would sell for under current market conditions. For example, common stock market value would be the price of the stock as of a specified date

Material Damage Policy
The policy covering damage to property (usually a commercial fire policy) as the result of which damage a business interruption claim may result. It is a condition of business interruption insurance that a material damage policy must be and remain in force

Material Fact
Information about the subject of insurance that if known would change the underwriting basis of the insurance, and which would cause the insurer to refuse the application or charge a higher rate

Misrepresentation
Act of making, issuing, circulating or causing to be issued or circulated an estimate, an illustration, a circular or a statement of any kind that does not represent the correct policy terms, dividends or share of surplus or the name or title for any policy or class of policies that does not in fact reflect its true nature.

Moral Hazard
Moral Hazard refers to increase in probability of loss that results from dishonesty in the character of the insured person. Thus it is the dishonest tendencies on the part of the insured person that may induce that person to attempt to defraud the insurance company

Morale Hazard
An attitude that increases the probability of loss from a peril. The attitude of, "It's insured; so why worry?" is an example of a morale hazard

Mortgage
A deposit or conditional transfer to secure the performance of some act: the person who makes the transfer is called the 'mortgagor', the other party, the 'mortgagee'; sometimes an intermediary called a 'trustee' is appointed

Mortgagor
A borrower who takes out a mortgage MPL (Maximum Probable Loss)
The largest loss thought probable under a given insurance policy. Normally applied to material damage risks where the total sum insured is not considered to be at risk from one loss event

Multi-Peril Policy
A package policy which provides protection against a number of separate perils. Multi-peril policies are not necessarily multiple line policies, since the combined perils may be all within one insurance line.

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Sunday, November 22, 2009

Life Insurance Glossary - L

Lapse
Termination of a policy due to failure by the insured to pay the premium as required

Larceny
The unlawful taking, carrying, leading or riding away of another person's property

Law of large numbers
While it is impossible to predict either the time or the loss amount of adverse events in relation to individuals, the averages for a sufficiently large set (of insureds) exhibit certain patterns of loss frequency and loss extent

Legal Costs
The costs of defending a claim from a third party and claimant's costs for which an insured is liable, are usually covered by a liability policy.

Legal liability
Any liability imposed on a person by a court of law

Lessee
The person to whom a lease is granted, commonly called the tenant.

Lessor
The person granting a lease, also known as the landlord

Letter of Credit (LOC)
Within the context of reinsurance, a banking instrument established on a 'standby' basis to secure recoverables from non-admitted reinsurers to enable the ceding company to reduce the provision for unauthorized reinsurance in its statutory statement

Liability
Any legally enforceable obligation

Liability Insurance
Insurance covering the policyholder's legal liability resulting from injuries to other persons or damage to their property. Liability Insurance. Provides protection for the insured against loss arising out of legal liability to third parties

Licensing
The incorporation of a company in the jurisdiction or the approval given to a company to underwrite insurance in the jurisdiction. These are recognized to be separate approvals and may be made in separate jurisdictions

Line
One line is equal to the ceding company 's retention. A proportional treaty may have a total capacity expressed as x lines and a reinsurer's share may be y lines

Line of Business
The general classification of business as utilized in the insurance industry, i.e., fire, allied lines, homeowners, etc.

Lloyds
A voluntary unincorporated association of individuals organized for the purpose of writing insurance; normally refers to Lloyd's of London, a group of individual underwriters and syndicates that underwrite insurance risks severally, using facilities maintained by the Lloyd's of London Corporation

Load
To add charges to an insurance premium

Loss Adjuster
An independent professional appointed by the insurers to settle claims

Loss of Profits
A synonym for business interruption insurance

Loss Ratio
The proportionate relationship of incurred losses to earned premiums expressed as a percentage.

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Sunday, November 15, 2009

Life Insurance Glossary - K

Thursday, November 5, 2009

Life Insurance Glossary - J

Saturday, October 24, 2009

Life Insurance Glossary - I

IBNR (Incurred but not Reported) provision
Provision for claims incurred but not reported by the balance-sheet date. That is, it is anticipated that there would be a number of policies that have, but for the advice of the claim to the insurer, occurred and therefore are likely to result in a liability on the insurer.
The magnitude of this provision can be expected to reduce as the time since the insurance risk on the contract expired extends. The magnitude is also likely to vary depending on the type of insurance risk covered by any particular class of insurance contract.

Illegal Contract
It is a contract, which is contrary to law and against the interests of public. It can not be sustained and does not have legal effect.

Imputed Negligence
Case in which responsibility for damage can be transferred from the negligent party to another person, such as an employer

Incurred Claims
Incurred claims equal the claims paid during the policy year plus the claim reserves as of the end of the policy year, minus the corresponding reserves as of the beginning of the policy year. The difference between the year end and beginning of the year claim reserves is called the increase in reserves and may be added directly to the paid claims to produce the incurred claims.

Incurred Loss Ratio
The percentage of losses incurred to premiums earned.

Indemnification
Compensation to the victim of a loss, in whole or in part, by payment, repair, or replacement

Indemnify
Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss.

Indemnity Period
The period, beginning with the date of the damage, during which the turnover of the business is affected by the damage. It lasts until the turnover recovers and reaches the point at which it would have been had the loss not occurred, or the expiry of the maximum indemnity period -the number of months selected by the insured -whichever occurs first.

Indemnity principle
Of a general legal principle related to insurance which holds that the individual recovering under an insurance policy should be restored to the approximate financial position he or she was in prior to the loss.

Independent adjuster
One who adjusts losses on behalf of companies but is not employed by any one. He or she is paid by fee for each loss adjusted.

Indirect Loss (Or Damage)
Loss resulting from a peril, but not caused directly and immediately thereby. For example: Loss of property due to fire is a direct loss, while the loss of rental income as the result of the fire would be an indirect loss.

Inherent vice
A characteristic depreciation such as the fading of ink, a cracking of parchment, the graying of hair

Insurable interest
An interest which might be damaged if the peril insured against occurs: the possibility of a financial loss to an individual which can be protected against through insurance.

Insurance
An economic device whereby the individual substitutes a small certain cost (the premium) for a large uncertain financial loss (the contingency insured against) which would exist if it were not for the insurance contract: an economic device for reducing and eliminating risk through the process of combining a sufficient number of homogeneous exposures into a group in order to make the losses predictable for the group as a whole.

Insurance Company
1. An organization chartered to operate as an insurer. (2) Any corporation primarily engaged in the business of furnishing insurance protection to the public

Insurance Entities
Any corporate body or individual which is operating as an insurer, reinsurer or insurance intermediary and which is subject to insurance regulation

Insurance Product
An insurance product is defined as a product that is provided by an insurance company.

Insurance Policy
Legal document issued to the insured setting out the terms of the contract of insurance.

Insured
The person to whom or on whose behalf benefits are payable under the policy

Insurer
A licensed legal entity, which underwrites insurance, including a mutual insurance company (but note the exemption of pure reinsurers)

Intermediary
Any person who, or organization which, gives advice by way of directly offering, advertising or on a person-to-person basis in respect of an insurance product and includes the promotion of such a product or the facilitation of an agreement or contract between an insurer and a customer. Intermediaries are generally divided into separate classes. The most common types are 'independent intermediaries' who represent the buyer in dealings with the insurer (also known as independent brokers) and 'agents' (which generally include multiple agents and sub-agents) who represent the insurer.

Irrevocable beneficiary
Beneficiary designation allowing no change to be made in the beneficiary of an insurance policy without the consent of the named beneficiary.

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Saturday, October 17, 2009

Life Insurance Glossary - H

Hail Insurance
Form of insurance that protects against loss of crops from hail

Hazard
A condition that creates or increases the probability of a loss

Health insurance
A generic term applying to all types of insurance indemnifying or reimbursing for losses caused by bodily accident or sickness or for expenses of medical treatment necessitated by sickness or accidental bodily injury.

House Breaking
When the theft is committed entering into or out of the premises stealthily

Housekeeping
The general care, cleanliness and maintenance of an insured property

Householders Policy
A package of insurance providing homeowners with a broad range of property and liability coverages

Hull insurance (in ocean marine and aviation insurance)
Coverage for physical damage to a vessel or aircraft

Hurricane
A tropical storm marked by extremely low barometric pressure and circular winds with a velocity of 120 miles an hour or more.

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Wednesday, October 7, 2009

Life Insurance Glossary - G

General average (in marine insurance)
A loss that must be borne partly by someone other than the owner of the goods that were lost or destroyed: for example, if it is necessary to jettison cargo to save a ship, the owners of the ship and the rest of the cargo that is saved will share in the loss of the goods that were intentionally sacrificed.

General damages
Damages awarded to an injured persons for intangible loss which cannot be measured directly by rupees. Popularly known as "pain and suffering." General damages are distinguished from special damages which are awarded from actual economic loss, such as medical costs, loss of income, etc.

Grace period
The period of time following the due date of a policy premium during which the payment of the premium will continue the policy and during which the policy is in full force and effect

Graded commission
A reduced commission justified by the size of the premium

Gross Negligence
Intentional failure to perform a duty, reckless disregard of the consequences as affecting the life or property of another

Gross Premium
The premium paid by the policyholder.

Gross Profit
The figure calculated by adding turnover to closing stock and work in progress and subtracting from this amount the sum of the opening stock and work in progress and the variables selected by the insured (usually defined as specified working expenses).

Group insurance
Any insurance plan under which a number of employees and their dependants are insured under a single policy, issued to their employer, with individual certificates given to each insured employee; the most commonly written lines are life and accident and health.

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Thursday, October 1, 2009

Life Insurance Glossary - F

Facultative Obligatory Treaty (Also Semi-obligatory Treaty)
A reinsurance contact under which the ceding company may cede exposures or risks of a defined class that the reinsurer must accept if ceded.

Facultative Treaty
A reinsurance contract under which the ceding company has the option to cede and the reinsurer has the option to accept or decline classified risks of a specific business line. The contract merely reflects how individual facultative reinsurance shall be handled.

Fidelity Bond
A form of protection which reimburses an employer for losses caused by dishonest or fraudulent, acts of employees.

Financial Loss Insurance
Insurance of legal liability for financial loss not involving bodily injury or loss of or damage to property

Fire
A combustion accompanied by a flame or glow, which escapes its normal limits to cause damage.

Fire insurance
Coverage for losses caused by fire and lightning, as well as the resultant damage caused by smoke and water .

Floater Policy
A policy under the terms of which protection follows moveable property, covering it wherever it may be .

Flood
Overflow of water from its natural boundaries. More specifically defined by the National Flood Act of 1968 as 'a general and temporary condition of partial or complete inundation of normally dry land areas from (1) the overflow of inland or tidal waters or (2) the unusual and rapid accumulation or runoff of surface waters from any source'.

FOB (f.o.b.)
Abbreviation for free-on-board, used in commerce to describe the value of goods at point of embarkation, excluding transport and insurance costs. Export values are usually expressed f.o.b. for customs and excise purposes, while imports are usually valued cost insurance and freight or charged in full.

Franchise
Deductible in which the insurer has no liability if the loss is under a certain amount, but once this amount is exceeded; the entire loss is paid in full.

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Friday, September 25, 2009

Life Insurance Glossary - E

Earned Premium
Premium for which protection has been provided. When a premium is paid in advance for a policy period, the company 'earns'' a portion of that premium only as time elapses during that period.

Effective date
The date upon which the policy is put in force, the inception date

Employers liability
Legal liability imposed on an employer making him or her responsible to pay damages to an employee injured by the employer's negligence. Generally, replaced by 'workers compensation', which pays the employee whether the employer has been negligent or not.

Endorsement
A written amendment affecting the declarations, insuring agreements, exclusions, or conditions of an insurance policy: a rider.

Escalation
Provision for automatic increases on some defined basis in premiums and sums insured.

Estimated Maximum Loss (EML)
An expression used in fire, explosion and material damage policies only. An estimate of the monetary loss which could be sustained by insurers on a single risk as a result of a single fire or explosion considered by the underwriter to be within the realms of possibility.

Ex Gratia
A payment made where there is no legal liability

Excess (also refer Deductibles)
Agreed amount upto which no claim is paid under a policy.

Excess of loss reinsurance
A form of reinsurance whereby the reinsuring company reimburses the ceding company for the amount and only the amount of loss the ceding company suffers over and above an agreed aggregate sum in any one loss or in a number of losses arising out of any one event.

Exclusion
That which is expressly eliminated from the coverage of an insurance policy

Expense ratio
The proportionate relationship of an insurer's expenses to premium expressed as a percentage.

Extended coverage insurance
Protection for the insured against loss or damage of his property caused by windstorm, hail, smoke, explosion, riot, riot attending a strike, civil commotion, vehicle and aircraft: this is provided in conjunction with the fire insurance policy.

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Friday, September 18, 2009

Life Insurance Glossary - D

Days of Grace or Grace Period
Period of time after the due date of a premium during which the policy remains in force (when both coverage of risk is available and also the premium can be paid without any late fees).

Debris Removal Clause
An extension to the standard policy to cover the cost of making a seriously fire-damaged building safe and removing debris.

Declaration Basis
An arrangement whereby a provisional premium is paid and subsequently adjusted by an additional or return premium on receipt of a declaration from the insured giving details of values at risk.

Declination
The insurer's refusal to insure an individual after careful evaluation of the application for insurance and any other pertinent factors.

Deductible
A provision whereby an insured may be required to pay part of a loss, the insurance being excess over the amount of the deductible.

Dental insurance
A type of health insurance that covers dental care expenses.

Depreciation
A decrease in the value of property over a period of time due to wear and tear or obsolescence. Depreciation is used to determine the actual cash value of property at time of loss.

Disability
Inability to perform all or part of one's occupational duties because of an accident or illness: see Total Disability and Partial Disability.

Double Insurance
If the insurance policy is taken from more than one underwriter where period of insurance, subject matter of insurance and sum insured are same, then this is called double insurance.

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Saturday, September 12, 2009

Life Insurance Glossary - C

Cancellation
The discontinuance of an insurance policy before its normal expiration date, either by the insured or the Insurance Company.

Capacity
The amount of capital with an insurance company as a whole for underwriting general insurance coverage.

Capital sum insured
It is the sum insured of a Person for which cover is sought under a Personal Accident Policy.

Captive Agent
An agent who, by contract, represents only one company and its affiliates.

Cargo Insurance
Type of insurance that protects the shipper/owner of the goods against financial loss if the goods are damaged or lost while in transit in between place of commencement and destination.

Catastrophe
Event which causes loss of extraordinary magnitude, such as a hurricane or tornado.

Cede
To transfer to a reinsurer all or part of the insurance or reinsurance risk written by a ceding company.

Ceding Commission
In calculating a reinsurance premium, an amount allowed by the reinsurer for part or all of a ceding company's acquisition and other overhead costs, including premium taxes. It may also include a profit factor. See Overriding Commission.

Certificate of Insurance
A document issued to a member of a group insurance plan, describing the insurance benefits and principal provisions of the policy in brief.

Cession
The amount of a risk which the insurance company reinsures: the amount passed on to the reinsurer.

Chartered Property Casualty Underwriter (CCU)
Professional designation granted to persons in the property and liability insurance field who pass a series of rigorous examinations and meet specified eligibility requirements.

Claim
It is a notification to an insurance company that payment of an amount is due under the terms of a policy by the insured.

Claim Amount
It is the amount payable by the insurer under a policy on a claim arising.

Claim Settling agents
They are appointed by insurer in a foreign country abroad for survey/settlement of claims arising out of policy issued in the home country for Overseas mediclaim and marine insurance policies.

Claims Cohort
A group of claims with a common period of origin. The period is usually a calendar year, but may be shorter. The origin may be defined by the date of the occurrence of claim or alternatively by the date of reporting.

Claims reserve
Claims provision, provision for outstanding claims/claims outstanding, claims reserve, total claim liability.

Clause
Sentences and paragraphs describing coverage's, exclusions, duties of an insured, and termination of coverage, and other such parts of the insurance policy.

Claused Bill of Lading
Bill of Lading, which has been endorsed by the ship owner, as the goods described thereon do not conform to what is offered for shipment e.g., package missing, inadequately packed.

Clean Bill of Lading
A bill of Lading is said to be clean if it has no superimposed clause expressing of any defective condition of the packaging or of goods.

Co-insurance
A means of spreading the risk on larger insurances between two or more direct insurers.

Co-Insurers
Two or more insurers jointly covering the same risk.

Collusion
A deal between persons usually to the detriment of other persons or for some improper purpose.

Combined ratio
A rough indication of the profitability of a property and liability insurer's underwriting operations, generally computed by adding the ratio of losses incurred to premiums earned and expenses incurred to premiums written.

Commercial Lines
Insurance for businesses, professionals, and commercial establishments.

Commission
The fee paid by the insurance companies to agents and brokers for the sale of policies.

Common carrier
A firm that offers to transport merchandise for hire and must accept shipments from anyone who wishes to use its services. Different laws and rules govern common carriers than do. Private or contract carriers that only transport the goods of those with whom they have made agreements.

Common law
Common law comprises the body of principles and rules of action, relating to the government and security of persons and property, which derive their authority solely from usages and customs of immemorial antiquity, or from the judgments and decrees of the courts. It is outside the laws created by enactment of statutes.

Comprehensive
A loosely used term signifying broad or extensive coverage of insurance.

Compulsory Insurance
Any form of insurance which is required by law. e.g. Motor third party insurance, Public Liability Act Insurance.

Concealment
Deliberate suppression of material facts that would affect the validity of a policy of insurance.

Conditions
Those provisions in insurance contracts that qualify the insurer's promise of indemnity or impose obligations on the insured.

Consequential Loss
A loss which is an indirect result of an accident or fire, e.g. food spoiled through breakdown of a refrigerator.

Consideration
Price, token, or other matter used as an inducement for the completion of a contract, as an insurance premium.

Constructive Total Loss
A loss of sufficient amount to make the cost of salvaging or repairing the property equal to or greater than the value of the property when repaired.

Contract of Insurance
An agreement between the insurer and one or more parties, called the insured, whereby the insurer undertakes in return for the payment of a certain consideration, called the premium, to pay to the insured a certain sum of money or to grant certain compensation on the happening of a specified event.

Contractual liability
Legal liability assumed under contract.

Contribution
A participation, as two insurance policies in the same loss.

Contributory negligence
The lack of ordinary care on the part of an insured person, which combined with the defendant's negligence and contributed the injury as a proximate cause. In some jurisdictions, contributory negligence on the part of an injured party will defeat his or her claim.

Cover Note
A cover note is a document issued in advance pending the issue of the policy, and is normally required if the policy cannot for some reason or other be issued straight away. Cover notes can also be issued during the course of negotiations to provide cover on a provisional basis. A cover note is not a stamped document but is honored, all the same , by all parties concerned.

Coverage
The scope of protection provided under a contract of insurance; any of several risks covered by a policy.

Credit insurance
A form of guarantee to manufacturers and wholesalers against loss resulting from default on the part of debtors.

Crop-Hail insurance
Protection against damage to growing crops as a result of named perils.

Cumulative Bonus
The percentage at which the sum insured gets increased annually, without additional premium, e.g. Personal Accident Insurance, Mediclaim Insurance.

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Friday, September 4, 2009

Life Insurance Glossary - B

Bailee
One who has custody of the property of another. Bailees "for hire" have certain responsibilities to care for the property of others that is in their custody.

Basic Limit
Usually refers to Liability of insurer indicating the lowest amount for which a policy can be written. This amount is either prescribed by law or company policy.

Basic Rate
The standard charge for a given type of risk for basic limit.

Beneficiary
An individual designated in a will to receive an inheritance, or the individual designated to receive the proceeds of an insurance policy, retirement account, trust, or other asset.

Bill of Exchange
It is the bill drawn by exporter against the importer.

Bill of Lading
Receipt for goods shipped on board a ship signed by the person who contracts to carry them, and stating the terms on which the goods are carried.

Blanket Contract
A contract of health insurance affording benefits, such as accidental death and dismemberment, for all of a class of persons not individually identified. It is used for such groups as athletic teams, campers, travel policy for employees, etc.

Bodily Injury
Physical injury, including sickness, disease, mental injury, shock or death.

Bonus
The Bonus system awards discounts for claim-free driving for a certain continuous period. This goes on increasing upto a certain limit for continuous claim free years.

Borderline Risk
An insurance prospect of doubtful quality from an underwriting point of view to put it in one among two group of risks.

Breach of condition
When a condition of the insurance contract is broken by the assured, the insurer may avoid the contract from the inception.

Broker
Middleman who represents an insured in the solicitation, negotiation or procurement of contracts of insurance, and who may render services incidental to those functions. He also represents insurer for certain purposes such as delivery of the policy or collection of the premium.

Burglary
It is a theft committed by breaking into or out of the premises. Evidence of breaking in, is necessary.

Burning Ratio
The ratio of losses suffered to the amount of insurance in effect.

Business Interruption Insurance
Insurance for a business owner against losses resulting from stoppage of business because of fire or other insured peril. The insurance provides reimbursement for lost net profits and necessary standing expenses.

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Thursday, August 27, 2009

Life Insurance Glossary - A

Abandonment
For a damaged property it may not be worthwhile to go in for repairs because the cost of repairers may exceed the value of the property when repaired. The insurer is entitled to take over the interest of the assured in whatever may remain of the subject matter insured and all proprietary rights incidental thereto. In ocean marine insurance, the transfer by the insured to an insurer of all rights, title, and interest in and to the insured property, in return for the sum insured. In property insurance, abandonment is relinquishing ownership of damaged property to an insurer to permit a total loss claim to be made.

Absolute Liability
Liability for damages even though fault or negligence cannot be proven.

Absolute Ownership
Absolute ownership exits where the interest or explicit right of possession of the insured is so free from limitations, qualifications or restrictions that it cannot be taken from him without his consent.

Accident
Any Unforeseen and unexpected event is considered an accident. For insurance purposes it has to be due to external, physical and violent means.

Accidental Bodily Injury
Injury to the body as the result of an accident

Accident, Hit and Run
Accidental Death or injury arising out of the use of a motor vehicle(s) the identity whereof cannot be ascertained in spite of reasonable efforts for the purpose.

Accidental Death Benefit
A monetary compensation in addition to the face amount of a life insurance policy, payable if the insured dies as the result of an accident. Sometimes referred to as "double indemnity."

Accompanied baggage
Baggage being taken by someone with his own person whilst travelling.

Accumulation
Percentage addition to policy benefits as a reward to the insured for continuous renewal.

Acquisition Costs
The insurer's cost of putting new business in force, including the agent's commission, the cost of clerical work, fees for medical examinations and inspection reports, sales promotion expense, etc.

Act of god
Any accidental act which could not have been prevented by any amount of human care and fore thought.

Actual Total Loss
It is a loss where the goods are completely lost and become irrecoverable.

Ad valorem duty
Duty evaluated on percentage of cargo value.

Additional cover
An insurance policy extended to cover additional risk perils such as strikes. Riots and Civil commotion etc. on payment of extra premium.

Adjuster
A person who investigates and settles losses for an insurance buyer.

Adjusting
The process of settling losses with or by an insurance buyer.

Administrator
An individual or professional organization, such as a bank's trust department, appointed by the court to administer an estate when the owner dies without having made a will or without nominating an executor. An executor may also be appointed if the named executor declines to serve.

Agent
An insurance company representative licensed by the state who solicits, negotiates or effects contracts of insurance, and provides service to the policyholder for the insurer.

Aggravation of risk
To make the existing risk worse, more troublesome, etc.

Aggregate Indemnity
The maximum amount that may be collected for any disability or period of disability under the policy.

Agreed value policy
Policy which undertakes to pay a specified amount in case of total loss. Under this case the policy does not take into account the current market value.

All-risks Policy
Coverage by an insurance contract that promises to cover all losses except those losses specifically excluded in the policy. Also known as open peril coverage.

Arbitration
A form of quasi-judicial dispute resolution where an unbiased person or panel gives an opinion about quantum of loss.

Arson
The willful and malicious burning of property, often with criminal intent.

Assessor
Person who estimates the value of goods for the purpose of apportioning the sum payable by the underwriters to settle the claims. Also called as Surveyor.

Assignment
The legal transfer of one person's interest in an insurance policy to another person.

Assured
Party indemnified or promised to be indemnified against loss by means of insurance.

Average adjuster
Independent expert who assesses the liabilities of the various parties to a common maritime adventure and to classify the various items of expenditure between general and particular average, viz, ship, Freight and cargo.

Avoidance
A right which can be exercised by and underwriter to relieve him of liability under the policy because the assured has been guilty of a breach of good faith or where the risk in voyage policy has failed to attach within a reasonable time after the underwriter wrote the risk.

Award
The decision in arbitration.

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Tuesday, August 18, 2009

Get great cases and bags and accessories for your netbook or laptop

Hi friends,

Was damn busy these days and so couldn't post anything. Hope you all are fine...

I have an HCL leaptop with me and in this rainy season my laptop bag was spoilt due to rain, due to frequent traveling. So., I bought a new laptop bag. As for all products I do, I researched for laptop bags (carry cases) on the net to research on the price and qualities available in the market.. While researching, I came across this site: www.gearzap.com... Am lucky to find this site and I thought it will be helpful to my readers so thought of sharing with you all.

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Life Insurance Demystified