APPRAISAL - A survey by a claims representative or claims appraiser estimating the amount of damage to property and the cost to repair or the determination of a complete loss.

AGENT - One who solicits, negotiates or effects contracts of insurance on behalf of an insurance company.

BINDER - Temporary insurance contract providing coverage until a permanent policy is issued.

ADJUSTER - A person who investigates claims and recommends settlement options based on estimates of damage and insurance policies held. This person can be a representative either of an insurance company or of the policyholder.

CALENDAR YEAR - Earned premiums and loss transactions occurring with the calendar year beginning Jan. 1, irrespective of the contractual dates of the policies to which the transactions relate and regardless of the dates of the accidents.

CALENDAR/ACCIDENT YEAR - The accumulation of loss data on all accidents with the date of occurrence falling within a given calendar year. The earned premium is the same as in calendar year.

CLAIM - A formal request for payment related to an event or situation that is covered under an in-force insurance policy.

DIRECT WRITTEN PREMIUM - The total premiums received by a property and liability insurance company without any adjustments for the ceding of any portion of these premiums to the reinsures.

EARNED EXPOSURES - The portion of the total amount of exposure (risk) corresponding to the coverage provided during a given time period.The portion of the total premium amount corresponding to the coverage provided during a given time period.

EARNED PREMIUMS - The portion of the total premium amount corresponding to the coverage provided during a given time period.

GENERAL LIABILITY INSURANCE - Coverage for an insured when negligent acts and/or omissions result in bodily injury and/or property damage on the premises of a business, when someone is injured as the result of using the product manufactured or distributed by a business, or when someone is injured in the general operation of a business.

GRACE PERIOD - A specified length of time within which a renewal premium that is due may be paid without penalty.

HAZARD - Circumstance that increases the likelihood or probable severity of a loss.

INSURABLE INTEREST - The interest an insurance policy owner has in the risk that is insured. The owner of a life insurance policy has an insurable interest in the insured when the policy owner is likely to benefit if the insured continues to live and is likely to suffer some loss or detriment if the insured dies.

LOSS RATIO - Relationship of incurred losses plus loss adjustment expense to earned premiums.

REINSURANCE - Form of insurance that insurance companies buy for their own protection, “a sharing of insurance.” An insurer (the reinsured) reduces its possible maximum loss on either an individual risk or a large number of risks by giving (ceding) a portion of liability to another insurance company (reinsurer).

SUBROGATION - The circumstance where an insurance company takes the place of an insured in bringing a liability suit against a third party who caused injury to the insured.

WRITTEN EXPOSURE - The total number of exposures of all policies issued during a given time period

WRITTEN PREMIUMS - The total premiums generated from all policies written by an insurance company within a given period of time.


BODILY INJURY LIABILITY COVERAGE (BI) - If an insured person is legally liable for an accident, BI coverage pays for injuries/death to people involved in the accident other than the insured driver. BI also pays for legal defence costs if you are sued. Certain exclusions may apply.

COMPREHENSIVE INSURANCE - Auto insurance coverage providing protection in the event of physical damage (other than collision) or theft of the insured car. For example, fire damage or a cracked windshield would be covered under the comprehensive section.

COMPREHENSIVE COVERAGE - If your insured vehicle is damaged due to an event other than a collision, Comprehensive coverage will pay for the damage. This includes damages from fire, theft, windstorm, flood and vandalism. If your vehicle is stolen, Comprehensive covers transportation and loss of use expenses when applicable.

ACCIDENT REPORT FORM - Typically referred to as a police report, this report contains important information about an auto accident, such as circumstances, parties involved and citations given.

WINDSCREEN COVERAGE - Covers damage to both the front and back windscreens, inclusive of side windows.

NO-CLAIM-DISCOUNT (NCD) - A reward scheme for the policyholder if no claim was made against the policy during the preceding 12 months of policy. Different NCD rates are applicable for different classes of vehicles. For a private car, the scale of NCD ranges from 25% to 55% as provided in the policy.


ANNUITY - Contract sold by insurance companies that pays a monthly (or quarterly, semi-annual, or annual) income benefit for the life of a person (annuitant), for the lives of two or more persons, or for a specified period of time.

BENEFICIARY - The person or party named by the owner of a life insurance policy to receive the policy benefit.

CONVERTIBLE TERM INSURANCE POLICY - A term life insurance policy that gives the policy owner the right to convert the policy to a permanent plan of insurance.

POLICY RIDER - An amendment to an insurance policy that becomes part of the insurance contract and either expands or limits the benefits payable under the contract.