A B C D E F
G H I J K L M N O P Q
R S T U V W X
The price for $100 or $1,000 of insurance, usually for one year,
expressed in dollars and cents. Alternatively, the rate is the
premium for a specified amount of insurance, for a specified
For some types of insurance in some jurisdictions legislation
requires rates to be applied consistently to similar risks, and
certain jurisdictions require regulatory approval of rates, e.g.
In addition to policyholder premium rates, the industry
commonly uses the term "rate" in reference to reinsurance premium
rates, and to commission costs for both insurance and
Person appointed to hold in trust and to administer property of
A return to the policyholder of part of the paid premium, because
of cancellation, suspension, reduction in insurance coverage, or
because of rate reduction.
The registration of a reinsurer is significant in determining
whether an insurer can obtain full credit with regulators for the
transfer of insurance liabilities to a reinsurer. Any reinsurer not
under the regulatory control of a Canadian insurance regulator (is
not licensed) is deemed unregistered and the primary insurer must
cover any liabilities transferred to this unregistered
Note: Registration (corporate), should not be confused with
The federal, provincial or territorial government agency
responsible for the control and regulation of the insurance
industry under its jurisdiction.
The reactivation of suspended or cancelled insurance. Restoration
of full amount of insurance or reinsurance after a claim has been
paid, with or without the payment of additional
A discharge from obligation or responsibility. To let go of, or
give up a legal claim. The most common types in insurance are:
First Party Release - between the insured and the insurance
company. Third Party Release - between the insured and a third
party. Indemnifying Release - between the insured and a guardian
for a minor or other person not legally competent.
The standard fire insurance policy insures against damage done in
removing the insured property from the path of the fire or other
insured peril (if loss is mitigated).
Removal also may mean the taking of property to some place
other than that at which it was insured.
A certificate which attests to the fact that an insurance policy
has been extended for another term.
The premium for the new term of the policy.
Generally an insurance policy will set out the conditions for an
insured to effect repairs to insured property. Ordinary repairs are
usually permitted without notice to the insurer.
Most policies of insurance of property give the company the right
to substitute other property of like kind and quality for insured
property which has been damaged or destroyed. This is making a
Applies generally to some fire insurance policies where a special
cover may be purchased so that in the event of fire, repairs or
replacement will be made with material of like kind without cost to
the insured for depreciation or betterment.
The cash value representing what it would cost to replace the
particular article which is the subject of the
The acceptance or rejection of an insurance risk and the amount of
premium that would be required, is determined by information
submitted by the person applying for such insurance.
Statements which would normally lead the company to decline the
acceptance of a risk, or to charge a much higher rate, are material
to the risk and are commonly considered "warranties."
All other statements such as the insured's address, etc. are
referred to as mere "representations" to distinguish them from the
more important statements considered to be
The penalty for false information on material facts or
"warranties" may be voiding of the policy.
Another name for an endorsement.
The chance of loss. Specifically the possible loss or destruction
of property or the possible incurring of a liability. Sometimes
refers to the subject of an insurance contract.
The taking of another's property by force or threat of
The remaining value of property after severe damage by fire or
other peril. The overall loss is reduced by the salvage value.
Undamaged property may be quite saleable and some property may be
partially damaged, thus repairable and then saleable.
1) A comprehensive list accompanying a policy to detail the
property, locations and amounts insured, and the applicable
2) In rate-making, the formula applied to determine a
Scheduled Property Floater
An inland marine form of policy specifically insuring various
individual items. Articles of unusual value, provided they are
movable, may normally be written this way and insured against many
hazards, often against "all risks."
1) A risk occupied only part of the year, such as a summer
2) In manufacturing, it may be a plant operating seasonally, such
as a cannery.
A person, corporation or organization which assumes all or part of
a risk itself rather than use an insurer, government departments
An agreement between concerned parties. In insurance, the agreement
is usually on the money changing hands to discharge an insurance
The alternatives offered to the insured or the insured's
beneficiaries when settling a loss. Life insurance policies provide
either a lump sum payment or a set annual amount for a fixed
period. Accident and health policies usually provide for weekly
benefits along with the payment of expenses as they occur, even
though the disability may not last long enough to total the lump
The cancellation by the insured of a policy before its natural
expiration; the insurer pays a return premium which is less than
the proportionate part that remains unearned.
The oral utterance or spreading of falsehood harmful to another's
reputation. Libel is written; slander is spoken.
Essentially, the devaluation by smoke, not fire, of merchandise and
property. Such damage is covered by the fire policy.
Actual loss from the natural, not the necessary, consequences of
the subject of complaint; e.g., specific payments for medical bills
or car repairs. In third party claims, it means the damages that
may be proved with documents.
This basic policy contains declarations, general provisions and
definitions applicable to the four principal sections of coverage;
property, liability, comprehensive crime, boiler and machinery. The
particular coverage requirements for each are handled by separate
forms attached to the basic contract.
Means: Fire, lightning, explosion, smoke due to a sudden, unusual and faulty operation of any heating or cooking unit in or on the premises, falling objects, impact by aircraft watercraft or land vehicle, riot, vandalism, water damage (more information available), windstorm or hail, loss while personal property is in transit. *This is a brief overview and not meant to be an exhaustive list.
Self-ignition of combustible material through chemical action of
Property protected against fire by a system of overhead pipes with
regularly spaced heads designed to melt at the heat of a fire, thus
releasing water for extinguishment.
Statement of Claim
A written statement by a plaintiff detailing the facts which
support the claim against the defendant and the relief
Statement of Values
The information required when a single rate is to cover more than
one item or building. To determine a correct average, the rating
bureau requires the policyholder to give the value of each separate
risk and its contents.
An act of the legislature. Common law is made up of the various
court decisions over the years. Case law may be altered by
Law determining the period within which a specific legal action
must be taken.
Special prescribed and standardized conditions that the Provincial
Insurance Acts require to be included in fire, automobile and
accident and sickness policies.
Merchandise for sale or manufacture, as distinguished from
furnishings, fixtures or equipment.
A company owned by a series of investors or stockholders
(shareholders) who assume the risks of profit or loss.
A term applied to articles or substances held for safekeeping. If
storing of such articles is prohibited by a policy, the policy will
be voided if loss consequently occurs, unless the company's
permission and consent has been specially granted.
A financial package permitting a settlement to be paid in regular
installments either for a fixed period or for the lifetime of the
claimant. Because it is tailor-made for individual cases, the
structure may also include some immediate payment to cover special
damages. The payment is usually made through purchase of an annuity
from a Life Insurance Company.
A trade contractor such as a roofer who usually subcontracts with a
Once a company has paid a loss for which someone other than the
policyholder is responsible, it may have the right to recover this
loss from the guilty party. This right is called
A single policy covering a risk that is divided among a number of
insurers; the policy is issued by the "lead" company (usually the
one with the largest percentage) and signed by all participating
A legal proceeding brought by one person against
The amount for which insurance is effected and the one on which the
premium is based. Often in life insurance, the term is "sum
The chief officer of the Government Department which regulates
Surety Bond is a three party contract between the Owner (Obligee),
Contractor (Principal) and the Bonding Company (Surety). The Surety
by lending its reputation and credit, guarantees, that the
Contractor's obligation to the Owner will be
Cancellation of a policy before its normal expiry by mutual consent
of insured and insurer.
A package policy specially designed to meet the normal insurance
requirements of a private tenant covering personal belongings and
The period of time from the inception to the termination of an
insurance policy or bond.
The wrongful taking of the property of another. It is a broad term
and includes larceny, pilfering, hold-up, robbery and
A claimant under a liability policy, so called because he is not
one of the two parties (insured and insurer) who has entered into
the insurance contract which pays his claim.
A fire policy insures the policyholder against loss or damage to
his own property. When a policy insures a person against the
liability he may incur to another for damages, it is "Third Party
Insurance." The insured is indemnified with respect to any loss
which he might suffer as a result of his legal liability to others
arising out of the peril against which insurance is
The right to ownership of property. The owner of real property
having just possession of his property.
A legal wrong arising from a duty fixed by law. Breach of this duty
causing injury to persons or property is repressible by legal
action for damages. Liability for tort involves private or civil
wrong or injury and is distinct from that under contract in that
the duty is owed to people, generally, rather than to a specified
Loss of all the insured property. Also a loss involving the maximum
amount for which a policy is liable.
An illegal act against another person's rights or
A special form of liability policy designed to protect the insured
for certain unknown contingencies over and above coverages and to
provide excess insurance.
A third person appointed to decide an arbitration.
To insure. More commonly, to scrutinize a risk and decide on its
eligibility for insurance.
1) The insurance company or group that underwrites or insures a
2) The individual within an insurance company whose responsibility
it is to accept or reject business in the particular line in which
he/she specializes and in this way chooses risks his/her principals
are prepared to underwrite.
Underwriters' Laboratories of
An organization financed by stock insurance companies whose purpose
is fire prevention and safety. It provides testing laboratories for
various manufactured items and approves those that are acceptable.
Labels issued by the Underwriters' Laboratories are evidence to the
public that the particular item meets the safety
Where the premises contain contents but no human beings, such
persons being temporarily away from the premises, on vacation for
example, the premises are said to be unoccupied. This is
distinguishable from Vacant in that in vacancy, the contents have
been moved out leaving nothing but the building.
A property located in an area not regularly serviced by a fire
Utmost Good Faith
A phrase in a legal document calling for the highest standards of
integrity on the part of the insured and the insurer.
A building with no occupants or furnishings. See also
An estimate or the act of assessing of value. This will frequently
be done through the process of an appraisal.
A policy which provides that a special amount shall paid in the
event of a total loss of the property.
Liability imposed upon a person even though not a party to a
particular occurrence, e.g., the owner of a motor vehicle is
vicariously responsible for injuries even though he is not driving
the car at the time of the occurrence.
1) Invalid, not legally binding.
2) An insurance contract that is prohibited by law and thus cannot
be held to be a valid contract.
The time which must elapse before an indemnity is
The intentional relinquishment of a known right. A waiver under a
policy is required to be clearly expressed and in
Statement or stipulation in a contract, the breach of which
nullifies the contract.
A warranty assumed to be a part of the insurance contract even
though not expressly included.
Water Damage Clause
A Portion of the policy affording coverage for certain specific
causes of water damage.
Protection against damage done to property by unusually high winds,
cyclones, tornadoes or hurricanes. This coverage is available under
the extended coverage endorsement of property policy.
An action taken during claims negotiations designated as "without
prejudice" is intended to be without detriment to the existing
rights of the parties.
A Court document commanding the defendant to enter an Appearance
within a specified number of days if he wishes to dispute the