| All Risks |
Wider
cover than given under a normal property insurance policy. Covers any loss or damage apart
from exclusions stated in the policy. |
| Annual Premium |
See
"Yearly Premium". |
| Buildings insurance |
A
policy covering the structure of a house or other building against a number of different
risks. |
| Car insurance |
Covers
legal liabilities arising from the use of a motor vehicle. Comprehensive policies also
cover damage to the vehicle. |
| Certificate |
Document
issued by insurers as evidence that insurance is in force to meet the requirements of the
law (notably for car insurance). |
| Claim |
When
a policyholder or beneficiary seeks payment or settlement under the terms of a policy. |
| Comprehensive insurance |
A
policy covering a number of types of loss or damage. The name is used mainly in car
insurance. |
| Condition |
Part
of a policy stating that certain rules must be followed, for example, the duty to take
reasonable care to protect property, or to report claims to the insurance company
promptly. |
| Contents Policy |
A
policy covering the contents of a home or other building against a number of different
risks. |
| Cover Note |
A
document giving temporary evidence of cover while the policy and certificate are being
prepared. |
| Endorsement |
A
written amendment to an insurance policy which becomes part of it. |
| Excess |
An
amount of money which the policyholder has to pay towards the cost of a claim, for
example, the first £50. |
| Exclusion |
Specified
property, person or event which the policy does not cover. |
| Green Card |
A
document issued to policyholders motoring abroad as evidence that they have the minimum
insurance cover required by the law of the country visited. Not essential for European
travel, because minimum legal cover is automatically included in UK policies. |
| Insurance Premium Tax |
A
tax imposed on most non-life insurance premiums. |
| Insured |
A
person covered by an insurance policy. |
| Legal Expenses insurance |
Covers
the cost of legal proceedings in circumstances defined in the policy. |
| Liability |
Legal
responsibility for causing loss to someone else by injuring them or damaging their
property. |
| Loss Adjuster |
A
person, independent of an insurance company but engaged and paid by it, who checks that a
claim is covered and negotiates with the policyholder the amount payable for a claim. |
| New-For-Old |
Cover
for property where an item lost or destroyed would be replaced with a brand new one, with
no deduction for wear and tear. Also called "replacement as new". |
| No Claim Discount (or Bonus) |
A
reduction in a renewal premium to reflect a claim-free record; used most often in motor
insurance. |
| Policy |
The
document providing full details of the contract between the insurer and the policyholder. |
| Policyholder |
Person
or organisation to whom the insurer issues the policy. Normally the person to whom
benefits are payable. |
| Premium |
The
amount paid by the policyholder for insurance. |
| Renewal Notice |
Notice
sent to the policyholder inviting him/her to renew a policy for a further period and
stating the premium payable. |
| Sum Insured |
The
amount for which property is insured, and the maximum amount which the insurance company
will pay for any claim. In life insurance, the amount which is guaranteed to be paid and
to which bonuses may be added. |
| Third Party |
Someone
involved in a claim who is neither the policyholder nor the insurer. |
| Underwriter |
Person
who decides whether to accept a risk and calculates the premium to be charged. |