Page 58 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Loss of Profits Insurance Loss Ratio
Market Value
Material Fact
Misrepresentation
Mutual Insurance Company Negligence
New for Old
Offer
Outstanding Claims Reserves
Package Policy
Partial Loss
Policy
see BUSINESS INTERRUPTION INSURANCE. the ratio of claims to premiums.
the price at which an investment can be sold or bought at any specific time.
anything which would affect the judgement of a prudent underwriter in accepting or deciding terms for a risk.
a false statement of a material fact which can be innocent or fraudulent.
an insurance company owned by its policyholders, i.e. it has no shareholders. failing to act in what the law considers to be a reasonable manner.
insurance where the replacement value of the property which has been lost or damaged is payable without deduction for depreciation.
the communication of the proposed terms of a contract by one party to another.
the funds put aside by insurers to cover claims that have been incurred but not yet paid.
a policy into which several different types of insurance have been combined.
a loss of less than the total value of the property, or a loss of less than the full sum insured on a policy.
written evidence of the terms of an insurance contract.
Loss Prevention
activities undertaken to prevent losses from occurring.
Malicious Damage
damage resulting from the deliberate, willful or wanton act of any person, or persons, committed with intent to cause damage. The term excludes loss or damage caused by theft.
Material Damage Warranty
before interruption insurance is effective, a material damage claim under other property insurances must have been admitted.
Misdescription
a false description of a material fact.
Mortgage Bond
a loan made for the purpose of purchasing, adding to or improving property.
Name
an underwriting member of Lloyd’s.
Net Claim
the insurer’s own share of claim payments after deduction of the amount payable by the reinsurers.
Non-disclosure
the failure to disclose material facts before entering or renewing a contract of insurance. Non-disclosure of facts that would have influenced the underwriter’s decision to accept business or to impose terms and conditions on the policy may render the policy voidable.
Operative Clause
the clause in a policy which sets out the circumstances in which the insurers will make claim payments.
Outstanding Losses
claims not yet paid where estimated figures are used in the insurer’s accounts.
Pairs and Sets
a clause usually found in an All Risks policy, which stipulates that the insurer will pay no more than the proportionate value of any article or part that is one of a pair or set and may be damaged, lost or destroyed. Any special value that the item has as part of a set is not taken into account.
Peril
a contingency or fortuitous happening which could cause losses.
Policyholder
the insured person.
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Full Binder Claims Mandates and Guidelines – V3: 2019