Page 56 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Consideration
the payment or promise of payment for goods or services, this being the premium in the case of insurance.
Contingency Contract
Contra Proferentem Rule
Cover Damages
Declaration Policy
Delegated Authority
Depreciation
Direct Insurer
Due Date
Endorsement
Ex Gratia Payment Excess
an unforeseen occurrence.
an agreement made by two or more parties with the intention of creating a legal obligation between them.
any ambiguity in contract wordings is construed against the drafter of those wordings.
the protection provided by insurance.
an amount of money claimed by or awarded to a third party as compensation for injury or loss.
a policy requiring the insured to declare periodically the value of fluctuating items, such as stocks or goods-in-transit, to enable the insurer to adjust the premium accordingly.
the authority given to an agent of an insurer to act on its behalf in accepting risks within agreed guidelines.
the extent to which (insured) property has diminished in value due to factors such as wear and tear.
an insurer in contact with insuring members of the public or corporations.
the date on which a policy becomes due for renewal.
documentary evidence of some alteration to a policy of insurance.
a payment made to an insured where there is no liability under the policy. that part of a loss for which the insured is liable.
Contingency Fund
monies put aside by a company in order to pay for unexpected losses.
Contract of Insurance
an agreement between insurer and insured whereby, in return for the payment of a premium, the insurer undertakes to indemnify the insured upon the happening of a specified event.
Contribution
the principle whereby two or more insurers covering the same risk contribute proportionately to any losses.
Cover Note
temporary evidence of the granting of insurance.
Declaration
the statement on a proposal form signed by the proposer certifying the truthfulness and accuracy of the information supplied.
Deductible
an American term, similar in meaning to excess and being the first portion of a loss payable by the insured.
Deposit Premium
an advance payment made by the insured before the actual premium has been decided.
Direct Insurance
an original insurance contract between insurer and insured.
Disclosure
the duty of the parties to a contract of insurance to reveal all material facts to each other before it is concluded and prior to each renewal.
Earned Premium
that part of a premium relating to a completed or expired period of risk; the actual premium chargeable under an adjustable policy.
Escalator Clause
the clause in a policy which allows the sum insured on property to rise throughout the period of insurance in step with the assumed rate of inflation.
Exception
a peril specifically excluded from the insurance.
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Full Binder Claims Mandates and Guidelines – V3: 2019