A : B : C : D : E : F : G : H : I : J : K : L : M
N : O : P : Q : R : S : T : U : V : W : X : Y : Z
A
ABI - acronym for the Association of British Insurers.
Accidental damage - this extends your basic insurance cover to protect you against accidental damage caused by yourself or your family.
Act of God - an accident or event that happens independently of human intervention, usually due to natural causes such as a storm or earthquake, which no human foresight can provide against.
Actuary - a professional person trained in the technical aspects of insurance and related fields who specialises in the mathematics and calculation of premiums and reserves.
Addendum - an addition or change to a contract.
Agreed valuation - in certain circumstances an insurer may agree to insure a vehicle for a declared value from the outset, as opposed to paying the market value following a claim (this will usually relate to classic cars).
Arbitration - this is a method used to reach an acceptable agreement between two parties that are in dispute. An independent person or body listens to the views of both parties and comes to an impartial decision that will be binding for all concerned.
B
Beneficiary - the ultimate recipient of a benefit (e.g. an insurance payout).
Blanket insurance policy - a policy that is designed to cover more than one person or more than one property.
Breach of contract - when someone fails to meet a provision of a contract.
Breakdown cover - a policy that provides recovery and repair services for vehicles/motorists for when they break down.
Broker - an agent who brings two parties together, enabling them to enter into a contract to which he is not a principal. His remuneration is usually calculated as a percentage of the sum involved in the contract but may be fixed according to a tariff.
C
Cash surrender value - the sum of money that is received by a policyholder when they surrender an insurance policy.
Certificate - a legal document, recognised in law, which proves that insurance cover is in place.
CII - acronym for the Chartered Insurance Institute.
Claim - a request from an insured person for payment from the insurer.
Co-insurance - an arrangement by which a number of insurance companies cover a particular risk.
Collision damage waiver - an optional insurance premium that removes your liability to pay an insurance excess should your vehicle be involved in an accident (usually applicable to a hire car).
Commission - the percentage of the premium cost that an introducer will receive.
Comprehensive cover - usually the most expensive cover for car insurance. It covers not only damage to a third party's vehicle but also to your own, as well as losses incurred by fire and theft.
Conditions - these are provisions in an insurance contract that state the rights and duties of the insured and of the insurer.
Contract - a legally enforceable agreement between two parties.
Contractual liability - if you sign a contract you are bound by the specific terms and conditions of that contract. Failure to comply may incur financial or, in some circumstances, even criminal penalties.
Cooling-off period - this is a period in which a customer has the right to cancel a contract of insurance without incurring any penalty.
Cover - when an insurance company agrees to insure a customer they are said to be 'covering' them.
Cover note - a temporary certificate of insurance, which will be issued for the short period of time that it takes for the certificate to be prepared.
D
Disclosure - this is the duty of any person when they are making an application for an insurance policy to disclose all relevant details that may affect the risk.
Double indemnity - payment of twice the policy's normal benefit for specific kinds of losses under certain conditions.
DVLA - acronym for the Driver and Vehicle Licensing Agency, the government department responsible for maintaining details of all vehicles on the road and all people who hold driving licences.
E
Effective date - this is the date on which an insurance policy begins.
Endorsement - if you are convicted of a motoring offence, the courts can fine you and endorse your driving licence with penalty points; endorsements must stay on your driving licence for 4 or 11 years depending on the offence.
Excess - the excess on a policy is the first part of any claim that you would have to pay.
Exclusions - events not covered by an insurance policy (e.g. allowing drivers other than those named on the policy to take control of the vehicle).
F
Fault claim - a claim where your insurance company will be unable to recover all of the costs (e.g. a break in to your car).
Financial adviser - there are two main types: an Independent Financial Adviser works on your behalf and is able to choose from any product or service; a Tied Agent works on behalf of a single company and can only recommend their products.
Fully comprehensive - this refers to a car insurance policy that covers damage to the owner's vehicle as well as to that of third parties.
G
Green card - this is a recognised document that is issued by an insurance company to policy holders who are motoring abroad as evidence that they have the legal minimum insurance cover required.
I
Indemnity - the principle by which insurance policyholders are put in the same financial position after a loss as they were immediately before it.
Insurance - an agreement where, in exchange for payment of an insurance premium, individuals, businesses and other organisations are guaranteed indemnity for losses resulting from certain incidents specified within the contract of the policy.
Insurance premium tax - this is a government tax charged as a percentage of insurance premiums.
Insurer - the contracted party who promises to pay losses or benefits (usually an insurance company).
L
Lapsed policy - this is when an insurance policy is terminated due to non-payment of the premium.
Legal liability - this is often included as part of an insurance policy to protect you if someone should want to take legal action against you.
Loading - there is deemed to be a standard or average rate for a persons insurance, and 'loading' is effectively what an individual is charged in excess of this for their insurance (e.g. for gender in respect of car insurance, as women are generally charged less than a man with the same risk details).
Loss - an insurance term meaning being robbed, burgled, injured etc.; a loss gives rise to a potential claim.
Loss adjuster - an independent third party usually used by an insurance company to assess the value of a claim, particularly if there is a disagreement between the insurer and the insured.
M
Material fact - information that would affect what an insurance company's attitude may be to insuring something or the premium it would charge.
Motor schedule - a document containing the details of your policy including any excesses and endorsements that are specific to your insurance, which should be read in conjunction with a policy document.
N
New for old (car insurance) - rather than pay the market value of a new car involved in a total loss, some insurers will replace it with an identical new car as the market value a brand new vehicle would have depreciated so much in the first year that it would leave the policy holder unable to replace the car.
New for old (home insurance) - in the event of a claim, you would be paid the money needed to buy replacement items at today's shop prices, regardless of the age or original purchase price of the items.
No claims bonus - the discount that you have earned on a previous insurance policy for not making a claim (based on the number of years that you have not made a claim for).
Non-fault claim - a claim whereby the insurance company is able to recover all the costs from another party.
O
Over-insured - this is the term employed to describe a situation whereby a person has taken out an insurance policy over and above the level of cover that they actually need and will therefore be paying a higher premium level than actually required (e.g. if you over-value the worth of you car).
P
Payment protection insurance - payments can be 'protected' by paying a small additional premium which means that your monthly instalments will be paid for you if you cannot meet them yourself (e.g. if you are ill or made redundant).
Policy - the document that provides details of the insurance that you have purchased.
Policy booklet - this documentation contains a full list of the terms, conditions and exceptions of your insurance policy.
Policy excess - the amount of money that you will have to contribute in the event of a claim.
Policy exclusions - these are events or instances which are not covered by your insurance policy.
Policy schedule - a document that details the sum insured, any discounts you may qualify for, and the actual premiums you have to pay for your policy.
Policy term - the period of time for which an insurance policy provides cover.
Policy holder - person to whom the insurer issues a policy.
Premium - the total amount of money paid in respect of an insurance policy.
Proposal form - the document that you may complete to request insurance cover and specify what it is that you would like insured.
Protected no claims bonus - you can pay an additional premium to the insurer so that none of your no claims bonus is lost in the event of a 'fault' claim.
Public liability policy - this covers legal liability for injury or damage caused to others, and normally applies to car insurance.
Q
Quotation - quotations are provided to demonstrate the actual costs of insurance cover, and the documentation forms the basis of a new contract or the renewal of an existing one.
Quote - this is an amount an insurer estimates to be the cost of providing their service based on the information that has been disclosed to them.
R
Registered keeper - this is the person who looks after a vehicle on a day-to-day basis but does not necessarily own it.
Renewal - this is an agreement to continue insurance beyond the original term, and is often made on an annual basis.
Risk - literally, that which is being insured against (e.g. theft, accidental damage).
S
Schedule or statement of insurance - this is a document, fixed to a policy, which gives details of the property and persons insured.
Settlement - this is when an insurer pays a claim.
Specified items (property insurance) - this is cover for specific items, usually of high value (you will usually be asked to describe the item to be insured and state how much it is worth).
Subsidence - this is the downward movement of the ground below a building, which can result in cracked walls, movement of walls and foundations, and general instability of the building.
Sum insured (buildings insurance) - the sum insured should be the full rebuilding cost of the property, not its current market value.
Sum insured (contents insurance) - the sum insured should be the total cost of replacing all contents as new, including furniture, clothes, jewellery, kitchen equipment etc.
Surrender value - the amount that you will actually receive when converting a policy into cash, which is often nothing.
Suspension - this is a temporary 'freeze' on insurance cover while, for example, you go abroad and the car is kept in a garage. In order to do this, the policyholder must return their certificate of insurance and continue to pay for the policy (if paid monthly or they will not receive a refund if paid in full). When the policy is due to renew, the policyholder will then receive a credit for the time they have suspended the policy (if they renew with the same insurer) and they will still accrue their no claims bonus.
T
Term - the period of time for which an insurance policy provides cover.
Third party - if you crash your car into someone you are the first party, your insurer is the second party, and the person that you collide with is the third party.
Third party, fire and theft - a relatively cheap form of car insurance that is similar to third party coverage but with additional cover against fire or theft.
Total loss - this is a decision made by an insurance company that it is uneconomical to repair your car.
U
ULR - acronym for uninsured loss recovery, a service that will take the necessary steps to recover any losses on your behalf, including pursuit of damages following personal injury to the driver or passengers of the insured vehicle and if necessary, appoint legal representation to reclaim your losses through the courts, without any cost to you.
Under-insurance - this is the situation when a customer takes out too little insurance, paying smaller premiums than they should.
Underwriter - someone who assesses an insurance risk and decides the correct premium to charge for insuring that risk.
Underwriting - where an insurance company takes into account known facts like your age, sex and health in order to assess the likelihood of you making a claim on the policy. Your insurance premiums are calculated on these factors.
Uninsured loss - anything that arises from an accident that you are not insured for.
V
Voluntary excess - this is the amount of money that you have to pay in the event of needing to make a claim. By voluntarily choosing a higher excess amount, you can often reduce your annual premium but you will have to pay more if you make a claim.
W
Written off - the term used to describe a vehicle which is a total loss (i.e. beyond economic repair).
