Page 48 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Considera on
the payment or promise of payment for goods or services, this being the premium in the case of insurance.
Con ngency Contract
Contra Proferentum Rule
Cover Damages
Declara on Policy
Delegated Authority
Deprecia on
Direct Insurer
Due date
Endorsement
Ex Gra a Payment Excess
an unforeseen occurrence.
an agreement made by two or more par es with the inten on of crea ng a legal obliga on between them.
any ambiguity in contract wordings is construed against the dra er of those wordings.
the protec on provided by insurance.
an amount of money claimed by or awarded to a third party as compensa on for injury or loss.
a policy requiring the Insured to declare periodically the value of uctua ng items, such as stocks or goods-in-transit, to enable the Insurer to adjust the premium accordingly.
the authority given to an agent of an Insurer to act on its behalf in accep ng risks within agreed guidelines.
the extent to which (insured) property has diminished in value due to factors such as wear and tear.
an Insurer in contact with insuring members of the public or corpora ons.
the date on which a policy becomes due for renewal.
documentary evidence of some altera on to a policy of insurance.
a payment made to an Insured where there is no liability under the policy. that part of a loss for which the Insured is liable.
Con ngency Fund
monies put aside by a company in order to pay for unexpected losses.
Contract of Insurance
an agreement between Insurer and Insured whereby, in return for the payment of a premium, the Insurer undertakes to indemnify the Insured upon the happening of a speci ed event.
Contribu on
the principle whereby two or more Insurers covering the same risk contribute propor onately to any losses.
Cover Note
temporary evidence of the gran ng of insurance
Declara on
the statement on a proposal form signed by the proposer cer fying the truthfulness and accuracy of the informa on supplied.
Deduc ble
an American term, similar in meaning to excess and being the rst por on of a loss payable by the Insured.
Deposit Premium
an advance payment made by the Insured before the actual premium has been decided.
Direct Insurance
an original insurance contract between Insurer and Insured.
Disclosure
the duty of the par es to a contract of insurance to reveal all material facts to each other before it is concluded and prior to each renewal.
Earned Premium
that part of a premium rela ng to a completed or expired period of risk; the actual premium chargeable under an adjustable policy.
Escalator Clause
the clause in a policy which allows the Sum Insured on property to rise throughout the period of insurance in step with the assumed rate of in a on.
Excep on
a peril speci cally excluded from the insurance.
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Binder Claims Mandates and Guidelines – 2015/2016