What is all risk policy?
An insurance policy against property injure has been written for insuring against several hazardous situations against which the insurers of policies are enlisted. In one these hazards are called ‘named perils’. In several cases these policies are issued to cover insurance against “all risks of loss or damage”. They are then given the term as “all risk” policies. The very phrase all risk may come out as bit puzzling since these entire policies rule out insurance against some specific risky situations.
What is amendment?
It means a formal text that approves or modifies an insurance master policy. You can also throw glance on Endorsement and Rider.
What is blanket insurance?
If a single insurance encompasses various items then policy is called blanket insurance. To take for instance you may write an insurance for covering two of your building or just 1 building and its various content. These policies need to fulfill specific restrictions that may not be required in specific policies. Blanket rates are those rates that rightly relate to blanket policies.
What is boiler and machinery insurance ?
This refers to insurance against loss that usually arises from the boilers’ operation and other machineries. It might also cover up loss suffered by these things or also incorporate all the harms being done to other property and losses incurred due to business interruption.
What is BONUS ?
It speaks about to ‘with-profits’ policy. It is the sum of the money that is added to the payable benefits under policy. The amount is also reliant upon the profits made by the insurance company. Additional bonuses can hardly be removed.
What is BUSINESS INTERRUPTION INSURANCE ?
When a person has faced some kind of disaster that prevents him from carrying business in proper way, he loses many of his gains and has certain ongoing operating expenses that can hardly be evaded. Business interruption insurance or often use and occupancy is nothing but the insurance of this loss against any damage.
What is CERTIFICATE OF INSURANCE ?
Generally certificate of insurance is a copy of a policy. If a policy that is issued thereby encompassing property that is mortgaged with a “mortgagee clause” attached, as with properties like dwelling houses, the mortgagee usually insists that he be given the original policy. In these cases a certificate is being issued by the agent or the company, which is given to the owner for his records. Also it denotes the paper which shows particular property details being insured by “master” or “open” policies.
What is CLAIM ?
It is the amount that a holder of policy believes to have been incurred from an insurance company due to some incidents being insured against. After determining its amount it becomes a “loss.” Both the terms loss as well as claim is identical.
What is COINSURANCE CLAUSE ?
A clause contained in some fire and burglary policies that require that the insured should carry insurance that is equal to a percentage value of the insured property that is stated if he collects his partial losses in full up to policy limits.
What is COMMERCIAL BLANKET BOND ?
Suppose you insure an employer against loss through dishonest means being committed by his employees. It covers all employees in the regular service of the employer for the period of the term of the bond. A commercial blanket bond is issued forth for a fixed amount, which is the highest payable amount for any one kind of misappropriation, whether 1 or more employees being involved or not.
What is COLLISION?
Suppose any car or other vehicle crashes after it strikes each other or with another object. Collision insurance insures against such losses.
What is COMPLETED OPERATIONS ?
It denotes accountability that a contractor might incur upon from some offensively work that he has executed after finishing a piece of work. Earlier it is considered to be part of products’ liability but today it is considered to be a separate subject.
What is COMPREHENSIVE AUTOMOBILE COVERAGE ?
A coverage item in an automobile damage policy insuring against thrashing or harm that is caused due flood, wreckage, inferno, theft, windstorm and many more. However loss by collision or upset is not included in it.
What is COMPREHENSIVE GENERAL LIABILITY POLICY ?
This policy is suitable for a producer, supplier or large wholesaler or retailer ensuring huge coverage for claims that are being made against him for physical injury or harm to others’ property for which he may be accountable and which arise out of operation of his business as a whole. The liability coverage of the automobile is not included in this policy.
What is CONTINGENT LIABILITY ?
A liability may be caused by an insured due to carelessness of self-sufficient persons that are engaged by him to do the work. The contingent liability of a principal contractor is a common example which may result from construction operations being undertaken by his subcontractors. In property damage insurance, the possibility of financial loss to a policyholder has resulted from harm or property loss of another. Supplier or customer also is included.
What is contractor’s equipment floater ?
It is an inland marine form for insuring the paraphernalia, tools of a contractor.
What is contractual liability ?
It is the liability being set forth by contract between people as notable from liability being imposed by law.
What is cover note?
A memo of contract to insure issued to record the transaction pending the writing of the policy or coverage. A policy to “close out” will be issued to replace it in a short period of time.
What is deductible ?
Some policies are written to pay only after the policyholder has himself under loss. The amount that he must lose first is deducted from the entire damage for determining the amount that the company must pay and thus becomes the “deductible”.
What is depreciation?
It is the difference between the value new and a reduced value at any subsequent time.
What is directors and officers liability insurance?
It protects officers and directors of a corporation against the compensation from the claims thereby resulting from negligent or wrongful acts at times of work. It also encompasses the corporation for expenses being incurred in shielding lawsuits arising from so-called wrongful acts of officers or directors. These policies always necessitate the insured to keep hold of part of the risk uninsured.
What is earned premium?
In case a premium is paid in advance for a specific period of time the company is said to earn the premium as the time advances. For instance a policy that is written for 3 years and being paid in advancement might be 1/3rd earned at the completion of the first year.
What is endorsement?
A written or printed form that is attached to the policy that alters provisions of the contract.
What is exclusion?
It denotes things that are not covered and as such not set forward in the words of a policy.
What are errors and omissions ?
A kind of insurance policy that will rightly step in for taking the position of insurance that is not affected for any kind of mistakes or any other faults. This is issued to concerns viz. mortgage concerns or others being duly involved in the routine insurance of many properties.
What is excess insurance?
An excess insurance policy is something that does not pay till the loss goes beyond an approved amount. This is an amount that might or might not be insured somewhere else. These policies are not subject to the fundamental theory of donation with non-excess policies, even though they may make a payment or distribute the loss with several other types of excess policies.
What is experience rating?
It means making rates on the basis of the past history of risk being insured.
What is expiration?
A policy “expires” as soon as the time for which it was written has run out. It is the date on which it expires.
What is exposure?
The danger of loss especially in case of fire damage that may arise from another risk that is close to it. It ensures the sum total of values that, if injured or cracked, would cause loss under a policy, i.e., the value of everything that a policy insures.
What is easehold insurance?
It is the right to occupy a building set forth in a lease. It may be precious but it may also incure losses at times.
What is flood?
Overflow of water from its natural boundaries. A common definition reads as “general and temporary condition of partial or complete inundation of normally dry land areas from (1) the overflow of inland or tidal waters or (2) the unusual and rapid accumulation or runoff of surface waters from any source”.
What are furniture and fixures?
In insurance language, it is termed as the contents of a building excluding merchandise for sale or manufacture, machinery etc. Fixtures are the fixed parts that are close to the building.
What is fidelity insurance?
It is a blanket policy insuring against employee deceit, money orders and counterfeit currency, as well as the forgery of the shareholder. Policy covers cash, securities and also the other property with a single limit of insurance that includes entire coverage without eliminating any one.
What is fidelity bond?
It is a bond that makes good if an employee steals or misuses or or else robs his employer.
What is fire?
By insurance definition fire denotes accompanying flame. For instance a fire policy is not legally responsible for losses that are caused by cigarettes, unless and until a flame is actually produced at the same time.
What are fire insurance and allied perils?
This covers losses from fire and lightning as well as the resulting damage that is caused by smoke and water. Usually supplemented by extended coverage.
What is fire resistive?
It refers to the formation of a building built of steel and concrete or other non-combustible items. It denotes a term used for “fire-proof”.
What is floater?
A policy that covers up property at any location, i.e., the protection “floats around” with the value.
What is loss?
In terms of insurance policy it means the amount that person who is providing insurance policies is required to pay because of a happening against which it has insured. It may also refer to, by and large, the financial result of some operation, as opposed to “profit”.
What is loss payable clause?
A condition in a policy whereby the company is directed by the policyholder to pay any loss that may be due to some other person being chosen for the policy. As a rule the payment is made by check or draft being allocated both to the insured and the chosen payee.
Who is lessee?
It refers to a tenant who has made a deal and also signed a charter.
Who is lessor?
It denotes a person who not only possesses property but also rents it to another under the terms of a contract of the lease.
What is liability insurance?
It is kind of insurance that gives protection from accountability being imposed by law for physical or other personal damage or spoil to property. It is often seen that legal liability normally results from acts of negligence or any kind of omission.
What is malpractice?
It refers to inappropriate professional activities and also the failure for executing correct professional skills by a true professional viz. medical practitioner.
What is marine insurance ?
It is one of the key divisions of insurance. He has to do primarily with property in transit. If by sea, called “ocean” marine. If otherwise, “inland” marine.
What is market value clause ?
By definition it is a clause whereby the company agrees that the amount that it is going to pay in case of loss that shall be the value of the destroyed merchandise. It needs les to say talks about the profit of the seller. Consequently, the clause is used with caution for avoiding the formation of a ethical danger.
What is maturity?
It denotes an agreed date when a donation policy ends and the proceeds including any bonuses are to be paid.
What is MATURITY DATE ?
It talks about the date that policy endows for its entire face amount.
What is maturity value ?
It is nothing the total that is to be paid under a whole life insurance policy if the insured person lives till the last age that is denoted on the mortality table on which the contract’s values were based.
What is medical payments insurance ?
It is an agreement to pay medical care cost to an injured party without considering whether or not the policyholder is liable to do series. It is written in conjunction with policies of general liability. A similar coverage, automobile medical payments, is obtainable in policies of automobile liability.
What is mortgagee clause ?
A mortgagee lends money on value’s security of the property that has been duly mortgaged. If the property burns, the mortgagee could find himself without any sort of collateral. He also demands on a policy’s cause which makes any loss being obtained that is to be paid to him and which safeguards his rights in all other methods. This kind of clause is called mortgagee clause.
What is mysterious disappearance ?
It refers to the vanishing of insured property in an inexplicable way. Such disappearance is now danger of an insured under broad form personal theft policy. Beforehand there were quarrels under theft policies as to whether property mysteriously lost or stolen. To avoid disagreement, insurers declared in such policies that mysterious disappearance was acknowledged to be due to stealing.
What is motor – own damage insurance ?
It is an insurance thereby covering loss or damage to the automobile of the owner.
What is motor -third-party liability insurance ?
A form of liability insurance which is specifically designed to indemnify for loss incurred through legal liability for bodily injury and damage to property of others caused by accident arising out of ownership or operation of an automobile.
What is motor insurance ?
It is any type of insurance rightly pertaining to the ownership and automobiles’ operation.
What is negligence?
One who fails to utilize care to be expected from practically cautious procedure may be regarded o be negligent. He may be so as the result of doing something or failing to do something. For a person to be legally responsible, for the consequence of his acts, it is first needed to prove his carelessness.
What is named insured ?
The person designated in the policy as the insured as opposed to someone who may have an interest in a policy but not be named.
What is O.L. & T.?
It denotes liability of various people like proprietors, landholders, and tenants which arises from the possession, procedure or safeguarding of premises.
What is owners and contractors protective liability insurance ?
It is policy that insures the legal liability of contractors and other persons for the negligent acts of independent contractors occupied by them and also includes cases for their negligent supervision of the work being performed.
What is obligee ?
It denotes a person who is being protected by a bond.
What is occurrence ?
It refers to some kind of an incident or occasion. A basis for coverage in liability policies is wider than the accident base, which necessitates the damage or injure for a specific accident.
What is property insurance ?
It denotes the real insurance and personal property against any kind of material loss and also some kind of injuries. It is a kind of indemnity insurance that should not be puzzled with property damage liability insurance .
What are punitive damages ?
It denotes sort of damages that are awarded individually and also denotes the compensatory damages, due to malicious or wanton misconduct, to serve as retribution for the offender and as a restraint to others. Sometimes it is also called exemplary damages.
What is package policy ?
A package policy is a blend of the coverage of 2 or more individual policies in one contract with one premium. It is a move toward saving and competence by facilitating the holder of the policy a single document instead of quite a few.
What is partial loss ?
It denotes loss relating less than all of the values insured or work on the policy to pay less than its maximum amounts.
What is personal injury liability ?
Sometimes it is synonymous with liability of physical damage. To be specific an added coverage in a liability policy relating to other than bodily injury to the person and would include such actionable wrongs as false arrest or imprisonment, unpleasant action, defamation, libel and privacy invasion.
What is personal property ?
It refers to property other than real life property. It includes buildings and land, whereas personal property is all else.
What is personal property floater (P.P.F.) (USA) ?
A broad form of inland marine policy issued to the furniture’s owners and other effects of the house that protects against “all risk” with certain omission. It encompasses the property of the insured property. With the arrival of insurance of the homeowner, separate PPF’s are rarely written, since the coverage is included in “5” policies of homeowner.
What is plaintiff ?
One who brings a lawsuit against another person. The “asker” is included in a lawsuit. The other party is the “defendant”.
What is preferred risk ?
It is a risk of a class that is regarded to be chiefly advantageous.
What is premium ?
It denotes sum of money that an insurance firm charges for providing the cover of the policy.
What is pressure vessel ?
It refers to something designed to contain gas or vapour under pressure. A steam boiler is good instance.
What is principal ?
It is the one whose honesty, fidelity, or ability to perform is guaranteed.
What is private passenger car ?
It refers to a vehicle that is mainly operated by the owner for his personal use, as distinguished from commercial purpose.
What is product liability ?
The responsibility a businessman or a producer may be occurred due to some defect in the product he has sold or manufactured.
What is property damage liability insurance ?
It encompasses insured person’s legal responsibility for inattentive harm to property of others. It is a kind of third insurance.
What is renewal certificate ?
It is the practice in many cases for issuing a short form certificate as a replacement for writing an entire new policy to replace one that has already expired its term This form is the renewal certificate thus containing references to the original policy instead of its total terms.
What is rental value insurance (LOP) ?
Suppose you have possessed a building and rent it to another, a fire or other insured happening is impossible to collect rent from your tenant till the building has been reinstated or revamped. Insurance against such loss is rent insurance.
What is replacement ?
The majority insurance policies of property provide the company the right to alternate other property of similar type and quality for insured property which has been spoiled or ruined. This is making a replacement.
What is rate ?
It is the price of one thousand of insurance, generally for 1 year. It is often in Rs and paise or in %.
What is reinstatement?
Several policies offer that the fee of a loss reduces insurance amount by the paid amount. When insurance amount is re-established by backing or other agreement, the policy is known to be restored. A good number of fire policies contain a routine replacement clause.
What is reinsurance ?
The process whereby a corporation may distribute its danger with another person thereby paying to such sharing company a portion of the premium it receives. It can be achived in quite a number of ways. Reinsurance contracts pay only to the company that re-insures and not to the policyholder.
What is replacement insurance ?
It refers to the insurance which pays the sound value of damages or destroyed property without undergoing depreciation.
What is risk ?
It determines the possibility of loss. In particular it refers to the probable defeat or property damage or the possibility of incurring of a liability. At times it also denotes the subject of an insurance contract when talking of a poor risk or a good risk.
What is reserve ?
A sum put aside to meet some future compulsion.
What is scheduled property floater ?
It is an inland marine form that is planned for insuring a range of precise items with a detailed amount of insurance on each. Any articles of unusual value may normally be written on such a form provided that they are movable. Such forms by and large insure against a lot of peril and time and again are written against “all risks”.
What is self-insurance ?
It is known as the term being used when it has been decided to suppose one’s own danger through internal financing method rather than purchasing insurance.
What is selling price clause ?
Gives a provision in a policy whereby it will disburse the price for which the owner likely to sell his goods instead of what it would cost him to replace. Profit of a merchant is also incorporated in it.
What is short rate cancellation/period insurance ?
When a policy is annulled by the holder of the policy before it accomplishes its natural finish, the company pays a return premium less than the proportionate part that is still not earned. The policy is cancelled “short rate,” not “pro rata”.
What is specific Insurance ?
As the name suggest it denotes insurance that is specific and just opposed to blank policies. That is to say it indicates what is insured on more definite terms. For example it is a policy that covers “building and contents” would be blanket while one covering a definite amount on the building and another amount on the contents would be “specific”.
What is sprinker leakage insurance ?
It is an insurance against the injure being done by water leaking from routine sprinklers and comparable fire prevention devices.
What is statement of values ?
When a risk is rated with a blanket rate i.e. when a single rate covers over 1 item or building, the rating bureau requires that the holder of the policy give value amount against each individual peril and by and large in the contents of each so that a right average may be derived. The required information required is known as ‘statement of values’.
What is stock ?
It stands for goods for sale or in the process of making as different from equipment, fittings or apparatus.
What is stop loss reinsurance ?
It represents a corporation who is aspiring to protect itself in case of net loss ratio for a given year and is rising above an exact percentage may buy reinsurance that pays in excess of that figure up to a higher % beyond which the company is responsible as well. In short, it denotes a plan which ameliorates an above-average net loss ratio.
What is subrogation ?
When a company pays a loss for which some person other than the holder of the policy is accountable, the right of the company for recovering its loss from the guilty party is known as the right of “subrogation”.
What is subsidence ?
It is any kind of damage being caused due to land movement on which property is located. A house built on the side of a hill may slide down the hill for torrential rain or other kind of things. However damages that occurred due to earthquake disasters are not included into them.
What is surety ?
It stands for the underwriter who gives guarantee to something under tie ups.
What is surplus line ?
Initially it is a risk or part thereof where the curious broker or agent had no existing market. In current times, the definition has expanded to describe any business in general subject to state regulations as to rate and form written by a non-admitted insurer as per the surplus line laws of the concerned place.
What is total loss?
It denotes loss of all the insured property. In addition, it also indicates a loss occurred due to the highest amount for which a policy is responsible.
What is term ?
It denotes time period for which a policy or bond is issued.
What is theft ?
It stands for the property intake of another.
What is tort liability ?
A tort is an injury to another person or to property, which is compensable under the law. Carelessness, gross negligence, and intentional wrongdoing are included in all the categories of tort.
What is time element ?
It stands for phrase that is used to elucidate a type of insurance that refunds the holder of the policy for the failure of using property. The sum of loss depends on the time span that it will require to restore or revamp or recuperate. Hence it is called the time element.
What is windstorm insurance (including tornado and cyclone) ?
As the name rightly suggests this is insurance that is incurred against harm being done to property by abnormal high winds or by kind of cyclones, hurricanes, tornados etc. Today majority of the liability is understood by the endorsement of the extended coverage.
What is water damage insurance ?
Insurance against loss due to the accidental presence of water in places it is not supposed to be. It is one of the covers of the additional extended cover endorsement, and also is written on special water damage policies by both fire and casualty companies.
What is waiver ?
The intentional relinquishment of a known right” is the definition adopted by some important courts. To illustrate, an insurance policy may set forth certain conditions with which a policyholder must comply under penalty of voiding his insurance, e.g., he may have accepted a policy in which it is stated that he must maintain a watchman on the premises or keep a sprinkler system in working condition. The company may forgo its right to the avoidance of the policy arising from the insured’s failure to comply. Such a waiver may be conveyed by implication as well as by direct statement..
What is workmen’s compensation insurance ?
As per the Workmen’s Compensation Act, 1923, employers must provide compensation to a worker injured while at work for an employer, whether or not the employer has been negligent. Insurance against such payments that an employer may be faced with is “workmen’s compensation”.
What is warranty ?
It is a statement made by the insured on the basis of literal truth of which the insurance contract’s validity is dependant. All the warranties may relate to the matters that are existing at present or before the issuance of the policy or may be undertakings by the insured that something needs to be done or deleted after the policy takes its effect and also during its continuation .
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