Page 47 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Business Interrup on Insurance
Capacity
Catastrophe Cover
Cession
Claim
Claim-Free Group (CFG)
Claims Ra o
Co-Insurer
Commission
Composite Insurance Company Concealment
Consequen al Loss
the class of insurance which provides cover for consequen al loss arising directly from another loss (for example, loss of pro ts following re damage).
insurance companies have a limit to the extent that they can expose themselves to probable losses. Acceptance of risk above capacity limits would require reinsurance be placed.
a form of excess of loss reinsurance which protects the Insurer against losses arising from major catastrophes.
that part of insurance transferred to a reinsurer. The transfer of rights, tle and interest under a contract.
a formal applica on from the Insured to the Insurer for payment or compensa on following a loss, damage or injury which has occurred as a result of the opera on of a peril covered by the insurance policy.
the term used in motor insurance to indicate into which of the ra ng groups a policyholder will fall according to his claims record.
see LOSS RATIO.
an Insurer who shares with others in co-insurance.
the payment made to intermediaries by Insurers for placing business with them.
an Insurer undertaking both life and non-life business.
the deliberate non-disclosure of a material fact.
a loss directly arising from another loss. The term is used to describe the class of business also known as LOSS OF PROFITS or BUSINESS INTERRUPTION INSURANCE.
Cancella on Clause
this is a condi on or clause in a policy which allows one party to cancel the contract following due no ce to the other, premium payment and refund condi ons.
Cap ve Insurance Company
an insurance company set up by a parent company, in order to receive that parent's insurance business.
Cer cate of Insurance
a document issued by an Insurer which is used mainly in the marine market to cer fy that cover is in force.
Chance
the probability or likelihood that an event occur.
Claim Form
a form supplied by an Insurer to enable an Insured to lodge a claim in terms of the policy.
Claims-Made Basis of Insurance
an underwri ng method used for Public Liability Insurance, based on the payment of losses which occur on or a er the retroac ve date shown in the schedule of the policy and which results in a claim being made during the period of insurance, or during a limited period therea er (known as the discovery period).
Co-Insurance
the division of a risk between two or more Insurers where each is individually liable to the Insured for their propor on of claims.
Collec ve Policy
policy issued by the leading Insurer on behalf of all the Insurers who share a risk by way of co-insurance.
Common Law
the part of a country's legisla on built up from customs and usages which have been recognised by its courts and thereby given the force of law.
Comprehensive Policy
a policy covering a wide variety of perils.
Condi on
part of a contract which must be complied with by one party or another.
Binder Claims Mandates and Guidelines – 2015/2016 Page | 45