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You can use our glossary
to find the definitions of many terms you will come
across when arranging a secured homeowner loan
Click on a letter A
to Z for terms beginning with that letter
A
ABI (Association of British Insurers)
the regulatory body for the UK insurance
industry.
Actuary
a qualified Fellow of the Institute
or Faculty of Actuaries. An actuary is trained to analyse
claims data and other statistics and calculate premiums
and reserves. In certain circumstances insurance companies
are required to have documents or calculations certified
by an actuary.
Addendum
an addition or change to a contract.
Advance payment
a payment up-front.
Affiant
a person who makes a sworn statement.
An affiant may be required if a claim goes to court.
Affidavit swear fee
may be charged when an insurance company
is required to swear an affadavit (make a written statement)
to a solicitor in connection with an insurance claim
or counter claim
All risks
an insurance policy that covers all
risks - except those not listed under its exclusions.
Annual policy
runs all year round rather than for
a specified period such as a holiday
Arbitration
a means of arriving at an acceptable agreement between two disputing parties.
An independent person or body, often a member of the Institute of Arbitrators, hears the arguments of both parties and
makes a decision that is then binding on all concerned.
B
Beneficiary
the ultimate recipient of a benefit such as an insurance payout.
Bona fide
actions or persons that are honest and in good faith.
Breach of contract
failure to perform the provisions of
a contract without a legal excuse
Broker
brings two parties together, usually buyers and sellers, and is paid a percentage of the sum
involved.
C
Cancellation clause
permits the insurer or insured to cancel a policy before its expiration date.
Cash surrender value
the amount of money received by the policyholder
if they surrender an insurance policy.
Usually zero for most car insurers, although some will refund some of the premium.
Caveat emptor
"let the buyer beware"
Caveat
a condition attached to an insurance quotation.
CII (Chartered Insurance Institute)
controls the professional, ethical and educational standards in the insurance industry.
Claim
an attempt to get the insurer to pay out on a policy bought from them.
Claim experience
a percentage or ratio that describes claims against premiums for a certain period.
Claims reserve
money set aside by an insurer to meet the cost of claims incurred but not yet settled.
Code of practice
an agreement by a company to act in
a certain way that protects the consumer.
Comprehensive cover
covers damage to your car and that caused by you to others as well as fire and theft.
Consequential loss
a financial loss that is incurred as a result of another loss, such as loss of earnings because of the
loss of a vehicle.
Cover
the risk against which a policy protects you.
Cover note
this acts as a temporary policy and certificate of insurance and is usually issued
whilst you are renewing an existing policy.
D
Declination
rejection of an insurance application by an insurance company.
Default
when a policyholder misses one or more premium payments they are in default.
Deposit premium
is sometimes paid when an application
is made for an insurance policy.
Direct deposit
many insurance companies require premiums to be paid by direct debit. This means that they premium
is claimed directly from the bank account of the policyholder.
Disclosure
the duty of an insurance applicant to tell the insurer all relevant information affecting the risk, such
as prior claims history.
Double indemnity
payment of twice the policy normal benefit for specific kinds of losses under certain conditions.
E
Effective date
the date on which a policy will begin.
Endorsement
an amendment of an insurance policy that alters the provisions of the contract.
Excess
the first part of any claim that must be covered by you. Increasing your excess can significantly
reduce your premium. Or a waiver can be paid to eliminate any excess at all.
Exclusions
events which are not covered by your
policy
Expense ratio
the ratio of insurance company operating expenses to premiums.
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