GLOSSARY
A contract in which an insurance company promises to compensate a policyholder (insured) in case of an insured loss.
The insurance company that accepts risk and promises to pay claims in case of a loss after receiving premiums.
The person (policyholder) who takes insurance and pays premiums to an insurer (insurance company).
A person, or a group of people licenced to sell insurance on behalf of insurance companies.
An unforeseen, unintended event.
The person, people, or entity who will receive benefits from an insurance policy or an annuity contract. Beneficiaries are usually defined.
An independent insurance professional/company licenced to advise customers on insurance.
A request for payment when an insured event occur as defined in the terms of the insurance policy.
Notice of termination of insurance by either the insurance company or the insured done before the renewal date of the policy.
The portion of each health care bill that the insured has to pay from their pocket. This is defined in the the health insurance policy.
Provisions in the policy agreement that exclude or limit (in case of limitations) coverage of a policy.
A written agreement either expanding or limiting the terms and conditions of a policy.
A specified amount of money the insured pays when making a claim. The excess is usually defined in the policy either as an amount or a proportion of the claim.
The first party is the insured, the second party is the insurance company and the third party any other person(s) who may be affected by the insured’s actions.
The period during which the policy remains in force even if the insured has not paid premium. The policy lapses after this period. It’s usually 31 days.
Any financial interest a person has in a property, person or liability.
The effects of your actions, or lack of actions while undertaking your responsibilities that make you liable to a claim.
Termination of an insurance policy caused by non-payment of insurance premiums.
History on any claims made by the insured in the past. Insurance companies will consider loss history before placing an insured in cover or renewing their policy.
A significant lie told by an insurer when applying for insurance which could cause an insurance company to reject the application.
The current value of the asset you are insuring such as your vehicle, home etc.
Amount payable by the insured to the insurance company (one-off or paid in installments). Premium should be paid for a policy to be in cover.
A medical illness that one had before applying for a health care insurance.
A formal contract or document drafted by the insurance company and issued to the insured setting out the terms on which the insurance cover has been provided.
The period a policy is in force, from the start date to the expiry date.
An application form completed by a client when seeking to buy insurance cover.
Continuation of a policy after expiry date and payment of premium.
An additional benefit attached to a policy.
An event or occurrence that can cause loss to an individual or a business e.g. fire, death, theft.
An amount of money returned to the insured for over payment of premium or upon cancellation of the policy.
The value of the property insured, or the value of insurance in cases where the value of property is not easily determinable. It’s the basis on which insurance premium is computed and claim paid.
The person who calculates the premium to be paid for insurance and decides whether to accept or reject risks on behalf of insurance companies. Sometimes used to mean insurance companies.