Page 45 - 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
Appor onment of Damages Act
Arson
Assurance
TERMINOLOGY
an absolute and unquali ed agreement to the terms of an o er, so crea ng 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: The , 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 interven on.
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 se ng 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. (Some mes called: “a re of convenience.”)
a term interchangeable with insurance, which is o en used in the case of Life and Marine business.
Accident
an unforeseen and unintended event or occurrence.
Accommoda on Business
normally unacceptable business taken by an Insurer as a goodwill gesture in the hope that further business will materialise.
Acquisi on Costs
the costs to an insurance company to gain or retain business. These costs include: the Commission payable to the intermediary; the adver sing and marke ng costs; new business processing costs; processing costs of exis ng business, and any other “hidden” costs which occur during the process of wri ng 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.
Arbitra on
a means of se ling disputes legally without going to court where the issue concerns the amount of a claim and not liability. A quali ed person or persons whose appointment has been agreed to by the par es involved, will hear the case and give a decision.
Asset
a property or nancial commodity which can, if necessary, be converted into cash.
A esta on
the signing clause in a contract of insurance.
Binder Claims Mandates and Guidelines – 2015/2016 Page | 43