Page 60 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Risk Management
the business discipline applied by large commercial and industrial organisation to manage those risks which can cause losses.
Salvage
Self-insurance
Short-term Insurance
Solvency Margin
Specification
Stop Loss Reinsurance
Subsidence
Surplus
Third Party
Third Party, Fire and Theft Insurance (Motor)
Uberrima Fides
Underwriter
whatever is recovered of an insured item or part of it, on which a claim has been paid.
insurance which a business organisation finances internally by establishing a fund to meet losses.
insurance that operates on a year-to-year basis and which may be terminated by the insurer or the insured.
the minimum size of shareholders’ funds required by the supervisory authorities.
the form on which details of large risks are set out and appended to the policy.
a form of reinsurance used as a means of limiting aggregate net losses on a particular class of business in any one year of account.
a shifting or falling away of ground in such a manner that a building is left wholly or partially unsupported in its original position.
that part of the sum insured which the insurer does not retain and consequently reinsures.
a person who is not a party to a contract.
third party insurance plus cover for fire damage to and the theft of the insured’s own vehicle.
the duty of good faith imposed on both parties to an insurance contract to disclose all material facts.
an insurer; a person who makes decisions on whether or not to accept insurance business.
Schedule
the list of personal details of the insured and the subject matter of the insurance in a policy.
Short-period Rate
the rate of premium applied to insurances in force for periods of less than 12 (twelve) months and which is higher proportionately than the annual rate.
Slip
a form submitted by a broker to underwriters containing particulars of the risk proposed for insurance.
Special Perils
extra risks added to a policy to give cover not provided in terms of the basis wording; the term usually applies to storm, water, wind and impact damage added to a fire policy.
Statute Law
laws promulgated by the government of a country.
Subrogation
the right of one party to stand in a place of another and take up the latter’s legal rights against a third party.
Sum Insured
the monetary limit of the insurer’s liability under a policy.
Target Risk
the main risk where the client has more than one premises. This is the risk which if damaged, will affect the insurer the most.
Third Party Insurance (Motor)
motor insurance cover providing compensation for injury to third parties and damage to their property.
Treaty Reinsurance
a contract between an insurer and a reinsuring company under which the former agrees to give and the reinsurer agrees to accept reinsurance for risks falling within the terms of the agreement.
Under-insurance
insurance for a sum insured less than the value at risk.
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Full Binder Claims Mandates and Guidelines – V3: 2019