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 25, 2009
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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Life Insurance Glossary - Y
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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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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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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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Life Insurance Glossary - B
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Life Insurance Glossary - E
Life Insurance Glossary - F
Life Insurance Glossary - G
Life Insurance Glossary - H
Life Insurance Glossary - I
Life Insurance Glossary - J
Life Insurance Glossary - K
Life Insurance Glossary - L
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