Page 49 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Excess of Loss
a form of insurance where the reinsurer agrees to pay the balance of any losses exceeding a stated monetary amount.
Executor
Fire
First Loss Policy
Flood
Franchise
General Insurance
Lapse
Law
Leading Insurer
Liability
Line
Loading
the person named in a will who has agreed to carry out its terms.
the accidental or fortuitous igni on of something that should not be on re. an insurance policy where the Insurer pays all losses up to a given limit.
an inunda on, over owing or erup on of a body of water over land that is not usually submerged. This is taken to include over owing of bathtubs, etc. In other words, water which is somewhere it is not supposed to be.
the amount of a loss at or below which no claim is payable by the Insurer. Above that amount, the loss will be met in full.
insurance which is not long-term business.
the termina on of an insurance contract through the non-payment of the premium or by the Insurer's decision not to invite renewal.
the rules enacted or customary in a country ordering or prohibi ng certain ac ons.
the Insurer who accepts a share of risk on a co-insurance agreement – o en the one who rst signs a broker's slip.
a claim upon one's assets by another person.
a share of an insurance which is divided among two or more Insurers.
those elements added to a premium to allow for Insurer's expenses.
Expense Loading
that part of the premium which meets the policyholder's share of the Insurer's administra ve costs.
First Amount Payable
the amount payable by an Insured in the event of a claim.
Fleet Insurance
a motor policy covering a group of vehicles with the premiums calculated on an experience basis.
Forced and violent
a term used to limit the scope of cover against the from a building. Both force and violence must be used to gain entry to or exit from the building.
Fund
the common pool into which premiums for each class of insurance are paid and from which the losses are met.
Landslip
a small landslide or rapid downward movement of a mass of rock or earth under the force of gravity.
Latent Defect
hidden or concealed fault in an ar cle.
Leading Case
a legal case where the decision has been widely followed.
Le er of Acceptance
a le er from an Insurer to a proposer indica ng that his applica on for cover has been accepted.
Limit of Liability
the maximum amount that an Insurer will pay for one loss in terms of a liability policy.
Lloyd's
the corpora on which organises the market of individual underwriters in London (but accepts business introduced by brokers from all parts of the world) and provides a full range of ancillary services.
Loss Adjuster/Assessor
an independent, quali ed person who assesses the size or value of a loss on behalf of an Insurer, but who may also be employed by an Insured to look a er his interests in a loss se lement.
Binder Claims Mandates and Guidelines – 2015/2016 Page | 47