|
Listed below are terms generally used in the insurance industry:
OWN DAMAGE
Coverage you cannot do without, the Own Damage insurance pays for the loss or repair cost of your vehicle due to an accident. We insure the vehicle based on its current market value.
THEFT
CARJACKING… a new word derived from a violent incidents by unscrupulous and armed groups, which take a vehicle by force and intimidation from the owner or driver. It is a term also similar to CARNAPPING, which are both rampant in these troubled times. The THEFT Cover of our policy provides ample coverage for this type of loss. We insure the vehicle based on its current market value.
Voluntary Third Party Liability - Bodily Injury
Accidentally sideswiped a pedestrian? We provide cover for your legal liabilities resulting to bodily injuries to pedestrians or passengers of another vehicle in case of accidents of which you are at fault.
Voluntary Third Party Liability - Property Damage
Bumped another car or motorcycle… and you are at fault? We take care of your legal liabilities resulting from damage to properties of third parties arising out of accidents where you are found at fault.
Acts of Nature
We provide optional cover for loss or damage to insured vehicles caused by typhoon, earthquake, flood and other convulsions of nature.
Auto PA (Personal Accident)
We cover personal accident with medical reimbursement to the driver and passengers of an insured vehicle.
Actual Cash Value:
The value of property based on the cost of repairing or replacing it with property of the same kind and quality. Typically, actual cash value equals the current replacement cost minus depreciation (age, condition, length of time in use, and obsolescence).
Agent:
In insurance, the person authorized to represent the insurer in negotiating, servicing, or effecting insurance policies.
Applicant:
The party applying for an insurance policy.
Application:
A printed form developed by an insurer that includes questions about the prospective insured and the desired insurance coverage and limits.
Beneficiary:
A person or party designated as such and to whom the proceeds of a policy is paid in the event usually of death of the insured. The beneficiary must stand in some relation to the insured, e.g. husband or wife, parent, brother or sister.
Claim:
A person’s request for payment from an insurer for a loss covered by the insurance policy.
Conditions:
The part of your insurance policy that states the obligations of the person insured and those of the insurance company.
Deductibles:
The portion of the loss that the policyholder agrees to pay out of pocket, before the insurance company pays the amount they are obligated to cover. For example, if the covered claim is Php1000 and your deductible is Php250, you pay Php250 and your company will pay Php750. Deductibles help to keep insurance rates reasonable. Raising the amount of the deductible lowers the cost of insurance.
Depreciation:
Reduction in the value of property due to age and use.
Endorsement:
Attachment or addendum to an insurance policy; an endorsement changes the contract’s original terms.
Insurable Interest: Any interest a person has in property that is the subject of insurance, so that damage to this property would cause the insured a financial loss.
Insurance Company:
An organization that has been chartered by a governmental entity to transact the business of insurance.
Insured:
The person whose insurable interest is protected under an insurance policy.
Insurer:
See Insurance Company.
Liability:
A legal obligation to compensate a person harmed by one’s acts or omissions.
Liability Coverage:
Insurance that provides compensation for a harm or wrong to a third party for which an insured is legally obligated to pay.
Limit of Liability: An amount up to which the insurer may pay under the terms of the policy.
Loss: A claim either paid or payable due to the insurer’s policy obligations.
Peril: The cause of loss or damage.
Property Insurance: Protects against the loss of, or damage to property other than real property (real estate) caused by specific perils.
Policy: The written forms that make up the insurance contract between an insured and insurer. A policy includes the terms and conditions of the coverage, the perils insured or excluded, etc.
Policy Declarations:
The part of the insurance contract that lists basic underwriting information, including the insured’s name, address and description of insured locations as well as policy limits.
Policy Limits:
The maximum amount an insured may collect or for which an insured is protected, under the terms of the policy.
Policyholder:
The person who buys insurance.
Policyowner:
An individual with an ownership interest in an insurance policy.
Policy Period:
The amount of time an insurance contract or policy lasts.
Pre-existing Condition:
A physical illness or disability that existed before the health or life insurance policy effective date and generally, which was not disclosed on the application.
Premium:
The price for insurance coverage as described in the insurance policy for a specific period of time.
Proof of Loss:
A sworn statement that usually must be furnished by the insured to an insurer before any loss under a policy may be paid.
Riders:
An addition to an insurance policy that becomes a part of the contract.
Risk:
The possibility or chance of loss or injury.
Underwriting:
The process of reviewing applications for coverage. Applications that are accepted are then classified by the underwriter according to the type and degree of risk.
Warranty:
A promissory warranty by which the insured undertakes that some particular thing will or will not be done or that some condition will be fulfilled; or affirms or negates the existence of particular facts. A warranty may be implied or expressed.
- Adapted from Rupp's Insurance & Risk Management Glossary, 2nd, © NILS Publishing Company, 1996
|
