Page 59 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Pooling
Premium Principal
Probability
Proportional Reinsurance
Proposer Proviso
Quota Share
Rated Up
Reinstatement of Sum Insured
Reinsurer
Renewal Notice
Representation
Risk
the basis of insurance whereby premium contributions are funded and used to pay losses.
the money paid by the insured to the insurer for cover as provided in the policy. a person instructing an agent to act on his behalf.
the chance of an event occurring.
reinsurance where reinsurers take a given proportion of the direct insurer premiums and losses.
the individual or organisation seeking insurance.
a policy condition whose observance is essential for the enforcement of the contract.
proportional reinsurance where the reinsurer accepts a fixed percentage of every risk written by the ceding company.
the term applied to insurance where the premium is higher than usual.
the restoration of the sum insured after it has been reduced through the payment of a claim.
an insurer or reinsurance company which accepts contracts of reinsurance.
the notice issued by a short-term insurer to remind a policyholder that his contract will terminate shortly.
a written or spoken statement made during contract negotiations.
Preamble Clause
the clause in a policy which sets out the essential elements of the contract.
Premium Rate
the price per unit of insurance.
Pro Rata Premium
the premium based on the length of time for which the insurer was actually on risk.
Professional Reinsurer
a reinsurance company not transacting any direct insurance business.
Proposal Form
an application for insurance which seeks to obtain from the proposer all the information relating to the risk.
Proprietary Company
a company owned by its shareholders.
Proximate Cause
the direct cause of a loss uninterrupted by any other event.
Rate
the sum charged per unit of exposure by which the premium is calculated.
Reinstatement
the making good of damaged property; the restoration of the sum insured after settlement of a loss on payment of an additional premium.
Reinsured
an insurer who effects and is entitled to be indemnified under a contract of reinsurance.
Renewal
the process of continuing insurance for a further period after the first or current period of cover has ended.
Replacement Cost
the value of property as indicated by the current purchase price of a similar article.
Retention Limit
the maximum liability which an insurer wishes to keep for his own account in respect of a particular risk.
a. b.
a situation which cannot be controlled or perfectly foreseen the subject matter of an insurance contract.
Full Binder Claims Mandates and Guidelines – V3: 2019
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