Copy of `Car insurances - Glossary of insurance terms`

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Car insurances - Glossary of insurance terms Category: Legal > Car insurance Date & country: 25/11/2007, UK Words: 49

ABI
Association of British Insurers

Access To Medical Records Act 1988
Terms that insurance companies must follow before approaching a medical practitioner for medical information.

Accident
An unexpected event, usually referring to an injury or fatality. Although some accidents are easier to prevent than others, the financial damage can be limited by taking out accident and sickness insurance.

Accident insurance
Insurance that covers you if you suffer certain injuries, such as loss of a limb or vision.

Act of God
An accident or event that happens in extraordinary circumstances that could not have been foreseen. For example any damage caused by a storm would fall under the Act of God umbrella.

ADD
Accidental Death and Dismemberment

Agent
An agent is someone who acts on behalf of another person. For example and Insurance salesman could be called an Agent as he is acting on behalf of the Insurance Company.

Amortisation
The depreciations in the value of assets, which a company owns. For example, if the company has a fleet of cars worth £1 million, they may set aside £300,000 per year to allow for depreciation in their value.

AMRA
Access To Medical Records Act 1988.

Applicant
Someone who applies for a credit, or other financial product.

Applied or nominal Interest rate
Rate used to calculate interest due.

Arbitration
A process by which two disputing parties come to a suitable conclusion.

Arrears
A late payment, or a payment after the event, for example most salaries are paid 'monthly in arrears' - I.e. the first payment is one month after commencement of work.

Arrears fee
Charges for any late payments. See late payment fee.

Association of British Insurers
Association made up of 95% of UK insurance companies. Method by which the insurance companies liase with Government Departments.

Beneficiary
The main recipient of a benefit.

Benefits
The money paid out to a claimant by the Insurance company.

Broker
An agent who brings together two parties enabling them to enter a contract for which he receives a set fee.

Broker's Fee
The fee paid to the Broker for their services.

Cancellation Clause
A condition of the contract whereby the Insurer or the Insured can cancel a policy before the expiration date.

Caveats
Conditions of an insurance quote.

CII
Chartered Insurance Institute. Governing body for the Insurance Industry.

Claim
Notification to an insurance company that a payment is due.

Co-insurance
When a group of insurers cover a risk together.

Conditional Insurance
An insurance policy that has to be taken out as a condition of obtaining a loan, it must usually be taken out via the lender's agency.

Conditions
Details of rights and duties of insurer and insured.

Contract
A legal agreement between to parties.

Cooling Off Period
The time period in which a personal may cancel the agreement without incurring any penalty.

Cover
Describes the risk that your insurance policy protects you against.

Direct debits
A payment method that once sets up to pay bills automatically.

Drugs
In financial terms, this usually refers to exclusions from insurance policies caused by abuse of illegal substances. However, many prescription or over-the-counter drugs can also have numerous harmful side effects, so it is always worth being well informed before taking any substance you have not taken previously.

Excess
Applies to an insurance claim. Simply the first part of any claim that must be covered by yourself.

Exclusions
Instances and possessions that are not covered by your insurance policy.

Financial adviser
A person who helps individuals with their financial situation.

Income protection insurance
Provides protection if you are unable to make payments on an outstanding agreement.

Insurance excess
Applies to an insurance claim. Simply the first part of any claim that must be covered by yourself.

Insurance Group
Insurance groups are a method used by Insurers to assess the risk of a particular vehicle. This numbers from 1-20 with the higher risk vehicles such as a Ferrari belonging to Group 20.

No Claims Group
As with car insurance your household insurers do now give you a discount if you have not made a claim in the previous insurance periods

Other income
This is income in addition to basic annual salary or, in the case of self-employed, annual net profits.

Payment protection insurance
See ASU accident, sickness and unemployment insurance. And unemployment insurance.

Period
The length of time for which, or end date until, the initial interest rate applies.

Policy exclusions
This is when you are not covered by your normal insurance policy.

Postcode
An alphanumeric code defined by the post office, which can identify properties to a location of within a handful of dwellings. Since their introduction they have been used for many purposes including assessing premiums for household insurance.

Postcode area
The first one or two letters of the first part of the postcode. E.g. B for Birmingham.

Premium
This is the payment you make to keep your policy in place. See: term assurance.

Professional
A person who is a member of a recognised profession, such as a doctor or solicitor. The definition of a professional can vary substantially from lender to lender with occupations such as banker being accepted as a profession by some but rejected by others. Many professions are disqualified from practising if they become bankrupt.

Quotation
A detailed document itemising costs, fees etc. Which will be incurred in taking out the specified loan.

Redundancy Insurance
An income protection that covers you in case you are made redundant, it gives you a tax-free income.

Repayment plan
If you fall behind on your payments a lender may try to renegotiate your repayment plan.