Page 53 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Abandonment
the giving up by an insured to the insurer of damaged property when a total loss is claimed.
Acceptance
Accident Insurance
Act of God
Adjustable Policy
Agent
Apportionment of Damages Act
Arson
Assurance
TERMINOLOGY
an absolute and unqualified agreement to the terms of an offer, so creating a contract.
a term used to describe all classes of insurance which do not fall within the meaning of the generic terms:
Life, Fire, Engineering, Marine or Motor Insurance.
Thus: Theft, Money, Fidelity Guarantee, Householders, All Risks, Glass and Public Liability are all classes of the Accident Class of Insurance.
an event that is the result of natural forces and which arises without human intervention.
a policy where the exact extent of the value at risk cannot be known in advance (for example goods in transit insurance). A provisional premium is charged and adjusted at the end of each period of insurance.
a person who acts on behalf of another and in the case of insurance is the intermediary between the proposer and the insurer.
provides that a claim for damages will not be defeated by the contributory negligence of the claimant, but that the damages recoverable shall be reduced by the court to such extent as it may deem just and equitable having regard to the degree of contributory negligence. (See: Contributory Negligence)
the act of setting property alight for malicious purposes. In the insurance context arson also means the deliberate burning of property in order to claim in terms of a policy of insurance. (Sometimes called: “a fire of convenience.”)
a term interchangeable with insurance, which is often used in the case of Life and Marine business.
Accident
an unforeseen and unintended event or occurrence.
Accommodation Business
normally unacceptable business taken by an insurer as a goodwill gesture in the hope that further business will materialise.
Acquisition Costs
the costs to an insurance company to gain or retain business. These costs include: the commission payable to the intermediary; the advertising and marketing costs; new business processing costs; processing costs of existing business, and any other “hidden” costs which occur during the process of writing business to the books of the insurance company.
Adjuster/Assessor
see LOSS ADJUSTER/ASSESSOR.
Agreed Value
the sum to be paid in the event of a total loss under a valued policy.
Arbitration
a means of settling disputes legally without going to court where the issue concerns the amount of a claim and not liability. A qualified person or persons whose appointment has been agreed to by the parties involved, will hear the case and give a decision.
Asset
a property or financial commodity which can, if necessary, be converted into cash.
Attestation
the signing clause in a contract of insurance.
Full Binder Claims Mandates and Guidelines – V3: 2019 Page | 51