Page 51 - Personal Underwriting Mandates & Guidelines - Binder product rules & addendums - Version 1

Terminology
Pooling
Premium Principal
Probability
Propor onal Reinsurance
Proposer Proviso
Quota Share
Rated Up
Reinstatement of Sum Insured
Reinsurer
Renewal No ce
Representa on
Risk
the basis of insurance whereby premium contribu ons are funded and used to pay losses.
the money paid by the Insured to the Insurer for cover as provided in the policy. a person instruc ng an agent to act on his behalf.
the chance of an event occurring.
reinsurance where reinsurers take a given propor on of the direct Insurer premiums and losses.
the individual or organisa on seeking insurance.
a policy condi on whose observance is essen al for the enforcement of the contract.
propor onal reinsurance where the reinsurer accepts a xed percentage of every risk wri en by the ceding company.
the term applied to insurance where the premium is higher than usual.
the restora on of the Sum Insured a er it has been reduced through the payment of a claim.
an Insurer or reinsurance company which accepts contracts of reinsurance.
the no ce issued by a short-term Insurer to remind a policyholder that his contract will shortly terminate.
a wri en or spoken statement made during contract nego a ons.
Preamble Clause
the clause in a policy which sets out the essen al elements of the contract.
Premium Rate
the price per unit of insurance.
Pro Rata Premium
the premium based on the length of me for which the Insurer was actually on risk.
Professional Reinsurer
a reinsurance company not transac ng any direct insurance business.
Proposal Form
an applica on for insurance which seeks to obtain from the proposer all the informa on rela ng to the risk.
Proprietary Company
a company owned by its shareholders.
Proximate Cause
the direct cause of a loss uninterrupted by any other event.
Rate
the sum charged per unit of exposure by which the premium is calculated.
Reinstatement
the making good of damaged property; the restora on of the Sum Insured a er se lement of a loss on payment of an addi onal premium.
Reinsured
an Insurer who e ects and is en tled to be indemni ed under a contract of reinsurance.
Renewal
the process con nuing insurance for a further period a er the rst or current period of cover has ended.
Replacement Cost
the value of property as indicated by the current purchase price of a similar ar cle.
Reten on Limit
the maximum liability which an Insurer wishes to keep for his own account in respect of a par cular risk.
a) b)
a situa on which cannot be controlled or perfectly foreseen the subject ma er of an insurance contract.
Binder Claims Mandates and Guidelines – 2015/2016
Page | 49