R
Rate - a percentage used by an insurer to calculate a premium. In property insurance and package insurances it is a percentage of the sum insured. In liability insurance it may be a percentage of turnover or of wages
Reinstatement - a term that is used in property insurance in three different ways:
(1) A form of cover where insurers agree to pay for the cost of property lost or destroyed without making any deduction for depreciation. This means that a claim is settled on the basis of replacing the property as new, even though the old preperty that had been destroyed was probably not new and its value had therefore reduced. The sum insured must however reflect the full value of the property insured as new.
(2) When insured property is damaged, the claim is usually settled by the insurer paying the policyholder the sum of money necessary to repair, replace or rebuild the property. But the policy contains what is called the reinstatement condition - this gives the insurer the option of repairing, replacing or rebuilding the property themselves without paying the policyholder any money.
(3) Following a claim, the sum insured is deemed to reduce by the amount of the claim until the policy is renewed at the next renewal date. If the property can be quickly replaced, however, the sum insured will need to be restored to its previous level immediately. This is often referred to as "reinstating" the sum insured
Remote Vehicle Inspection - the inspection of motor vehicles using a video and PC-linked system. Following damage to a vehicle, this enables an engineer to view the damage from his desk-based PC rather than having to visit the repairer’s premises
Renewal - the process of continuing the insurance from one period (generally a year) into the next. Both the policyholder and the insurer usually have the option of not renewing the cover
Renewal Notice - communication sent to the policyholder inviting him/her/them to renew a policy for a further period. As a minimum, this shows the premium payable. Many insurers and brokers also include a summary of the cover
Return Premium - a premium refund payable to the insured as a result of cancellation or change to the policy
Risk Improvement - a change to premises or business practice that an insurer requires as a condition of providing insurance
Risk Management - the idenfification of the risks and financial dangers which could affect a company, particularly through weaknesses in management systems, and the minimising of those risks
Road Risks - relates to risks where vehicles covered under a motor trade policy are on a public road
S
Schedule - the part of a policy containing the information that is particular to that policy, e.g. name of policyholder, premium, sums insured, etc
Sickness Insurance - cover which provides a weekly benefit if the person insured is temporarily unable to engage in his or her usual occupation owing to sickness. It may be combined with Personal Accident Insurance
Special Peril - a peril customarily insured under a property insurance policy in conjunction with fire, such as explosion, flood, storm, earthquake and subsidence
SprinklerSystem - a fire protection system consisting of pipes and sprinkler heads that react to heat and discharge water in the event of a fire
Statement of Fact - a series of facts about you and/or your business that an insurer has collected during discussions with you about insurance. These include many of the key facts which will determine whether the insurer is prepared to provide insurance, and if so at on what terms. When applying for insurance, you may be asked to sign a statement of fact to confirm that all the facts are true. Before signing, it's essential to make sure the statement is factually correct and to point out any inaccuracies - failure to do this could invalidate the insurance
Subject to Survey - phrase used by an insurer to signify provisional acceptance of an insurance pending inspection by a surveyor. The surveyor often stipulates changes to the premises and/or the processes that go on there (known as "risk improvements") which the insurer may require before providing or continuing the insurance
Sum Insured - in property insurance, the maximum amount payable in the event of a claim. It should represent the cost of replacing, repairing or rebuilding the proerty. Each item in the policy may have its own sum insured (i.e. the maximum amount payable in respect of that item), and there may also be a Total Sum Insured (i.e. the overall maximum payable). See also Underinsurance
Survey - an inspection of the premises by a trained surveyor who will determine whether the insurer wishes to insure it and identify whether any action needs to be taken to improve the risk
T
Temporary Total Disablement - disability which currently such prevents an insured person following gainful employment or occupation, but which is expected to improve
Terms - may refer to either the standard conditions of a policy, or any special terms that an insurer imposes that apply only to a particular policyholder. The second of these meanings is what is usually meant in the phrase "subject to terms"
Theft by Employees - insurance against loss arising from dishonesty of staff holding positions of trust. Also referred to as Fidelity (Guarantee) or sometimes Crime insurance
Third Party - a person claiming against a policyholder. In insurance, the first party is the insurer and the second party is the policyholder
Third Party Insurance - insurance, particularly in connection with motor vehicles, which provides cover for any loss or damage suffered by a third party but gives no cover for the insured or his or her property
Third Party, Fire and Theft - in addition to the protection given by third party insurance, this type of motor policy covers loss or damage to the policyholder’s own vehicle as a result of fire, theft, or attempted theft
Tort - a civil breach of a personal duty owed to one’s fellow citizens in general (e.g. negligence) as opposed to a breach of contract. The injured person has a right to seek damages from the wrongdoer
Trespass - a form of tort that relates to the direct interference with another’s property including person, land or goods
U
Unattended - a term used in connection with theft insurance relating to leaving items in unattended vehicles. Insurers rely on the definition laid down in the ‘Star Fire Diamonds v Angel’ court case which states that for a vehicle to be ‘attended’ there must be someone able to observe it and in a position to prevent interference with it
Underinsurance - a policy condition in property insurance. It requires the amount of a claim payment to be reduced proportionately if the policyholder has not insured his/her property for the full value or replacement cost. Suppose for example a building is insured for £1m, but the true cost of rebuilding it is £2m. The building is partially damaged, and the policyholder claims for the cost of repairs, i.e. £300,000. Under the average condition, the amount of the claim is reduced in the proportion £1m / £2m. The policyholder thus receives £150,000. Also known as the "average" condition
Underwriter - an employee of an insurer who accepts insurance on its behalf
Utmost Good Faith - means that both parties to an insurance contract have a duty to disclose, clearly and accurately, all material facts relating to the insurance. Anyone applying for insurance must therefore supply the insurer or broker with information that is true and accurate. Any breach of this duty by the policyholder may entitle the insurer to repudiate liability. Utmost good faith is sometimes referred to by the Latin expression “uberrima fides”
V
Void - not legally binding
Voluntary Excess - an excess accepted by the policyholder to obtain a premium reduction. (See also Excess)
W
War Exclusion Clause - a clause in insurance policies (except marine policies) excluding liability for losses from perils such as war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, or usurped power. A similar clause used in marine policies is called the ‘Free of Capture and Seizure Clause’
War Risks - the perils of war, civil war and related perils that are regarded as the responsibility of the state rather than the insurer
Warranty - a very strict condition in a policy imposed by an insurer. It generally requires the policyholder to do something - or avoid doing something. Warranties sometimes begin with the words "Warranted that . . . " or "It is a condition precedent to liability that . . ." A breach of a warranty entitles the insurer to deny liability
Wear and Tear - this is the amount deducted from claims payments to allow for any depreciation in the property which has been caused by its usage
Without Prejudice -
1. term used in discussion and correspondence. Where there is a dispute or negotiations for a settlement and terms are offered ‘without prejudice’, the offer so made or a letter so marked and subsequent correspondence cannot be admitted in evidence without the consent of both parties concerned
2. term used by an insurer when paying a claim. It is generally used when the insurer feels the claim may not be strictly be covered by the policy, and the idea is to ensure that the payment will not be treated as a precedent for future similar claims
Write-off - a damaged vehicle which is not repairable, or one which would cost more to repair than the vehicle was worth before the damage occurred. Also known as a ‘total loss’
X
No entries under X.
Y
Yearly Premium - the premium that is paid each year to renew the insurance - whether as a single sum once a year or in instalments during the course of the year. Also known as the annual premium
Z
No entries under Z.
Rate - a percentage used by an insurer to calculate a premium. In property insurance and package insurances it is a percentage of the sum insured. In liability insurance it may be a percentage of turnover or of wages
Reinstatement - a term that is used in property insurance in three different ways:
(1) A form of cover where insurers agree to pay for the cost of property lost or destroyed without making any deduction for depreciation. This means that a claim is settled on the basis of replacing the property as new, even though the old preperty that had been destroyed was probably not new and its value had therefore reduced. The sum insured must however reflect the full value of the property insured as new.
(2) When insured property is damaged, the claim is usually settled by the insurer paying the policyholder the sum of money necessary to repair, replace or rebuild the property. But the policy contains what is called the reinstatement condition - this gives the insurer the option of repairing, replacing or rebuilding the property themselves without paying the policyholder any money.
(3) Following a claim, the sum insured is deemed to reduce by the amount of the claim until the policy is renewed at the next renewal date. If the property can be quickly replaced, however, the sum insured will need to be restored to its previous level immediately. This is often referred to as "reinstating" the sum insured
Remote Vehicle Inspection - the inspection of motor vehicles using a video and PC-linked system. Following damage to a vehicle, this enables an engineer to view the damage from his desk-based PC rather than having to visit the repairer’s premises
Renewal - the process of continuing the insurance from one period (generally a year) into the next. Both the policyholder and the insurer usually have the option of not renewing the cover
Renewal Notice - communication sent to the policyholder inviting him/her/them to renew a policy for a further period. As a minimum, this shows the premium payable. Many insurers and brokers also include a summary of the cover
Return Premium - a premium refund payable to the insured as a result of cancellation or change to the policy
Risk Improvement - a change to premises or business practice that an insurer requires as a condition of providing insurance
Risk Management - the idenfification of the risks and financial dangers which could affect a company, particularly through weaknesses in management systems, and the minimising of those risks
Road Risks - relates to risks where vehicles covered under a motor trade policy are on a public road
S
Schedule - the part of a policy containing the information that is particular to that policy, e.g. name of policyholder, premium, sums insured, etc
Sickness Insurance - cover which provides a weekly benefit if the person insured is temporarily unable to engage in his or her usual occupation owing to sickness. It may be combined with Personal Accident Insurance
Special Peril - a peril customarily insured under a property insurance policy in conjunction with fire, such as explosion, flood, storm, earthquake and subsidence
SprinklerSystem - a fire protection system consisting of pipes and sprinkler heads that react to heat and discharge water in the event of a fire
Statement of Fact - a series of facts about you and/or your business that an insurer has collected during discussions with you about insurance. These include many of the key facts which will determine whether the insurer is prepared to provide insurance, and if so at on what terms. When applying for insurance, you may be asked to sign a statement of fact to confirm that all the facts are true. Before signing, it's essential to make sure the statement is factually correct and to point out any inaccuracies - failure to do this could invalidate the insurance
Subject to Survey - phrase used by an insurer to signify provisional acceptance of an insurance pending inspection by a surveyor. The surveyor often stipulates changes to the premises and/or the processes that go on there (known as "risk improvements") which the insurer may require before providing or continuing the insurance
Sum Insured - in property insurance, the maximum amount payable in the event of a claim. It should represent the cost of replacing, repairing or rebuilding the proerty. Each item in the policy may have its own sum insured (i.e. the maximum amount payable in respect of that item), and there may also be a Total Sum Insured (i.e. the overall maximum payable). See also Underinsurance
Survey - an inspection of the premises by a trained surveyor who will determine whether the insurer wishes to insure it and identify whether any action needs to be taken to improve the risk
T
Temporary Total Disablement - disability which currently such prevents an insured person following gainful employment or occupation, but which is expected to improve
Terms - may refer to either the standard conditions of a policy, or any special terms that an insurer imposes that apply only to a particular policyholder. The second of these meanings is what is usually meant in the phrase "subject to terms"
Theft by Employees - insurance against loss arising from dishonesty of staff holding positions of trust. Also referred to as Fidelity (Guarantee) or sometimes Crime insurance
Third Party - a person claiming against a policyholder. In insurance, the first party is the insurer and the second party is the policyholder
Third Party Insurance - insurance, particularly in connection with motor vehicles, which provides cover for any loss or damage suffered by a third party but gives no cover for the insured or his or her property
Third Party, Fire and Theft - in addition to the protection given by third party insurance, this type of motor policy covers loss or damage to the policyholder’s own vehicle as a result of fire, theft, or attempted theft
Tort - a civil breach of a personal duty owed to one’s fellow citizens in general (e.g. negligence) as opposed to a breach of contract. The injured person has a right to seek damages from the wrongdoer
Trespass - a form of tort that relates to the direct interference with another’s property including person, land or goods
U
Unattended - a term used in connection with theft insurance relating to leaving items in unattended vehicles. Insurers rely on the definition laid down in the ‘Star Fire Diamonds v Angel’ court case which states that for a vehicle to be ‘attended’ there must be someone able to observe it and in a position to prevent interference with it
Underinsurance - a policy condition in property insurance. It requires the amount of a claim payment to be reduced proportionately if the policyholder has not insured his/her property for the full value or replacement cost. Suppose for example a building is insured for £1m, but the true cost of rebuilding it is £2m. The building is partially damaged, and the policyholder claims for the cost of repairs, i.e. £300,000. Under the average condition, the amount of the claim is reduced in the proportion £1m / £2m. The policyholder thus receives £150,000. Also known as the "average" condition
Underwriter - an employee of an insurer who accepts insurance on its behalf
Utmost Good Faith - means that both parties to an insurance contract have a duty to disclose, clearly and accurately, all material facts relating to the insurance. Anyone applying for insurance must therefore supply the insurer or broker with information that is true and accurate. Any breach of this duty by the policyholder may entitle the insurer to repudiate liability. Utmost good faith is sometimes referred to by the Latin expression “uberrima fides”
V
Void - not legally binding
Voluntary Excess - an excess accepted by the policyholder to obtain a premium reduction. (See also Excess)
W
War Exclusion Clause - a clause in insurance policies (except marine policies) excluding liability for losses from perils such as war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, or usurped power. A similar clause used in marine policies is called the ‘Free of Capture and Seizure Clause’
War Risks - the perils of war, civil war and related perils that are regarded as the responsibility of the state rather than the insurer
Warranty - a very strict condition in a policy imposed by an insurer. It generally requires the policyholder to do something - or avoid doing something. Warranties sometimes begin with the words "Warranted that . . . " or "It is a condition precedent to liability that . . ." A breach of a warranty entitles the insurer to deny liability
Wear and Tear - this is the amount deducted from claims payments to allow for any depreciation in the property which has been caused by its usage
Without Prejudice -
1. term used in discussion and correspondence. Where there is a dispute or negotiations for a settlement and terms are offered ‘without prejudice’, the offer so made or a letter so marked and subsequent correspondence cannot be admitted in evidence without the consent of both parties concerned
2. term used by an insurer when paying a claim. It is generally used when the insurer feels the claim may not be strictly be covered by the policy, and the idea is to ensure that the payment will not be treated as a precedent for future similar claims
Write-off - a damaged vehicle which is not repairable, or one which would cost more to repair than the vehicle was worth before the damage occurred. Also known as a ‘total loss’
X
No entries under X.
Y
Yearly Premium - the premium that is paid each year to renew the insurance - whether as a single sum once a year or in instalments during the course of the year. Also known as the annual premium
Z
No entries under Z.