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GLOSSARY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Actuary – A technical person in Insurance. A person whose work is to statistically calculate risks, premiums etc. for Insurance.

Alteration – Change of terms of policy conditions.

Annuitant – A person receiving the annuity.

Annuity – A payment of fixed sum of money at regular intervals of time. An investment yielding fixed payments during the holder's lifetime for selected no. of years or in perpetuity.

Annuity certain – Annuity payable for definite period.

Annuity – Immediate – Annuity payment will start immediately after purchasing, depending upon the option of the annuitant. Eg. Yly, Hly, Qly or Mly.

Annuity deferred – The payment of annuity to the annuitant starts after some time from the date of purchase of annuity as per the option of the annuitant.

Annuity for life – Annuity payment to the annuitant will be made as long as the annuitant is alive.

Annuity joint life – Annuity will be paid in joint life annuity, as long as second life is alive. i.e. even after the death of 1st life, annuity will be paid as long as 2nd life is alive.

Appointee – A person appointed to some position. If nominee under a policy of Insurance is minor, an appointee is appointed to take care of policy Monies during the minority of nominee.

Assignee – A person to whom, the right, property is transferred.

Assignment – Transfer of the right, claim, property etc. to another person.

Assignment – Absolute – Assignment is made where all the rights would vest on the assignee without reverting back to the assignor.

Assignor – The person executing the assignment.

Assurance – A promise, a guarantee, the act of assuring.

Assured – A person to whom the insurance policy is payable.

Beneficial interest – Law for one's own benefit – receiving benefit.

Beneficiary – Any one receiving the benefit.

Benefit – Payments made by an insurance company, public agency, welfare society etc., during sickness, retirement, unemployment etc. or for death.

Bonafide – In good faith; without dishonesty, fraud or deceit.

Bond – A binding agreement; a duty or obligation imposed by a contract, Promise.

Bonus – Anything given in addition to the customary or required amount; a dividend to insurance policy holders.

Brokerage – A broker's fee.

Claim – To demand for performance of promise, ask for rightfully belonging or due to one. Claim is a promise in an insurance contract.

Claim – early – A death claim resulting in within 2-3 years from the date of commencement of policy/revival of the policy, is called early claim.

Claim very early – A death claim resulting within 2 years from the date of commencement of policy/revival of the policy, is called very early claim.

Claim by Death – A claim resulting in on account of death of the life assured.

Claim by Maturity – A claim payable after the term of the policy under endowment type is Maturity claim.

Claim Concession – A concession shown in case of death claim, for payment of full sum assured, if premiums have been paid for certain minimum no. of years, subject to certain rules, is called claim concession.

Claimant – A person who makes claim

Clause – A stipulation or restriction made in a legal contract.

Code of Conduct – Any set of principles or rules of conduct

Collateral Security – A parallel security, side by side – additional security by side.

Commuted value – To substitute (payment in a lumpsum) for payment in instalment.

Consent – To agree, to give permission, approval or assent.

Declaration of Good Health – A self declaration that one is in good health.

Deferred – Postponed – withheld until a certain date (a deferred annuity).

Disability – A disabled condition; that which disables, as an illness or injury.

Disability clause – A clause in an insurance contract entitling a policy holder who becomes permanently disabled to cease premium payments without loss of life insurance, and sometimes to receive a specified indemnity.

Discounted value – A reduced amount from the normal value receivable.

Early claim – A death claim resulting in within 2-3 years from the date of commencement of policy/from the date revival of the policy, is called early claim.

Earning – Money etc. earned by labour or service, wages or other compensation.

Evidence of title proof – Evidence of the proof of title. Evidence to show the title of the property.

Exgratia payment – A payment made out of gratis, sympathy.

Ex-port facto – Done or made afterward.

Foreclosure action – To deprive the right to redeem a mortgage when regular payments have not been kept up. In insurance when loan and interest accumulate, the insurer will cancel the contract by taking foreclosure action and adjust the policy value (surrender value) towards outstanding loan and interest and close the contract.

Forfeiture – The act of forfeiting – Something one loses; because of default as penalty.

Fraud – Something said or done to cheat; deceit, trickery, cheating.

Fraudulent – Acting with fraud; deceitful.

General Insurance – Non life insurance is called general insurance

Grace period – Time allowed for payment of premium is called grace period.

Gratuity – A gift of money etc. especially that given over payment due for a service rendered.

Hazard – A risk, peril, damage; jeopardy

Hazard-Moral – Risk arising from the possible dishonesty or imprudence of the insured.

Hazard-physical – Risk arising from the possible physical health of the insured.

Heir – A person who inherits or is legally entitled to inherit through the natural action of law, another's property or title upon other's death.

Heir-Legal – The heir who has the right under laws intestate, descent and distribution to receive the estate of an ancestor who has died without leaving a will.

Income – The money or other gains received especially in a given period by an individual, corporation etc. for labour or services or from property, investments.

Indemnity – Protection or insurance against loss, damage etc; repayment or reimbursement for loss or damage etc., compensation.

Indemnity Bond – A bond, promise executed to indemnity in case of failure to honour a contract or agreement.

In force – A policy of insurance under which premiums are paid regularly on due dates is called in force policy. i.e. it is an in force policy or policy is in force.

Insurable interest – The financial interest one has in the subject matter of insurance is called insurable interest.

Insured – A person whose life, property etc. is insured against loss.

Insurer – A person or company that insures others against loss or damage, underwriter.

Interim Bonus – Bonus paid in between two valuations; as an interim measure.

Joint Hindu family – A joint family system called Hindu undivided family (HUF) is recognised in Indian Law. KARTHA is the Chief person of the family. He is like of Trustee of the family. Other members of family are called “co- parceners” . In case of policy financed by HUF, the claim will be paid to the kartha of the family.

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Lapse – To become forfeit or void because of the holder's failure to pay his premium at the stipulated time: said of an insurance policy.

Late Fee – The penalty charged under an insurance policy for late payment of premium.

Letter of acceptance – Acceptance of an insurance proposal sent to the proposer.

Letters of Administration – A document by which an administrator is authorised by the probate court to administer the goods or property of a dead person.

Licence – A permission to do something; especially; auhtorisation by law to do some specified thing. In insurance, licence is issued authorising to solicit insurance business.

Lien – A method of underwriting. Placing restriction on the benefits payable under an insurance contract, depending upon the nature of risk. The lien can be constant diminishing or initial. A constant lien of 10% would mean that the sum assured payable is reduced by 10% in case of death. Eg. of diminishing lien is; the sum assured is reduced by 50% in 1st year, 40% in 2nd year, and so on, in case death, during the 1st 5 years.

Life First Class – Means Healthy life who can be offered life insurance on standard Terms, at ordinary rates.

Life substandard – Means a life who will not fit into the category of healthy life. Sub standard life will be underwritten in a different manner in life insurance compared to standard lives/first class lives.

Material Fact – Important, essential or pertinent facts, which would influence the judgement of the insurer in a contract of insurance.

Maturity – In an insurance contract, it means that due date of payment due to the policyholder under the contract of insurance. i.e. maturity date of policy; the amount becoming due, the time at which a note etc. becomes due.

Medical report – A report by a Medical Examiner about the health of an individual.

Minor – A person who has not attained majority according to law; under full legal age – under age.

Minority – A state or period or condition of being under age.

Mode – The method of payment of premium is called mode in insurance terminology. The mode can be yearly, half-yearly, quarterly or monthly. Single premium in lumpsum is also allowed in some plans.

Moral Hazard – The risk arising from the possible dishonesty or imprudence of the insured.

Mortgage – Pledging of property to a creditor as security for the payment of a debt.

Mortgagor – A person who mortgages property.

Nomination – The act of nomination or the fact of being nominated. A person nominated under Sec.39 of Insurance Act in a contract of Life Insurance to receive the policy moneys in case of death of the policyholder.

Nominee – A person who is nominated.

Non-acceptance – The process of not accepting. In insurance a proposal for insurance may not be accepted. It is called non-acceptance of a proposal – Declining the proposal.

Non-disclosure – Means not disclosing the facts. In insurance nondisclosure can lead to cancellation of contract.

Non-forfeiture – Not forfeiting the amount. In insurance there are non-forfeiture regulations, which provide that if premiums are paid for certain minimum no. of years, the policy will be entitled for a reduced benefit.

Null and Void – Without legal force; not binding; invalid.

Objections – The act of objecting- a feeling or expression of opposition, disapproval or dislike.

Occupation – That which mainly engages one's time (one's) trade, profession or business.

Outstanding – Unfulfilled, unsettled, unpaid, pending realisation.

Paid up – Paid up in insurance is used as fully paid up and reduced paid up. Fully paid up means all premiums in the policy have been paid. Reduced paid up means, the policy is not paid in full. Partially paid. It is a lapsed policy. A paid up policy is entitled for vested bonus( bonus already attached). A paid up policy is not entitled for future bonus. This applies for a with profit policy.

Percapita – For each person.

Personal statement – A statement declaring about the health. Answering all columns in a regarding health form, truthfully.

Plan – The products of insurance companies are called plans of insurance. The various insurance schemes are called plans of insurance.

Probate of will – Means the act or the process of proving before a duly authorised person that a document submitted for official certification and registration as the last will and testament, is genuine; the judicial certification of a will.

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Reassignment – Assigning the policy of insurance to the original person or to somebody else after receiving the consideration amount.

Rebate – A reduction or discount allowed.

Registered – Officially recorded, legally certified or authenticated.

Reinsurance – To insure again esp. under a contract by which the first insurer protects himself by transferring all or part of the risk to another insurer.

Renewal commission – The commission paid to an agent when the policyholder pays the renewal premium under contract of insurance.

Risk – A chance of loss, the degree of probability loss, the amount of possible loss to the insuring company, a person or thing with reference to the risk involved in insuring him or it, the type of loss that a policy covers as fire, storm etc.

Salary Saving Scheme –A scheme under which the insurance premium is deducted from the salary of the employee by the employer and remitted directly to the insurer. The employer and the insurance company reach a Memorandum of Understanding in this respect.

Solvency – A solvent state or quality. Able to pay all one's debts or meet all financial responsibilities.

Standard Life – Means a good and healthy life for insurance who can be charged normal premium and accepted for insurance at ordinary rates.

Succession certificate – Certificate/order issued to the heirs or rightful successors of any kind by the competent authority.

Sum assured – The insured amount under contract of insurance.

Surrender value – The voluntary cancellation of the policy by the insured person in return for a cash payment (surrender value) thus freeing the company of liability.

Tabular premium – The premium computed as the premium per thousand of insurance. The tabular premium shown in the table of the insurance company, is quoted to the customer.

Trust – The fact of confidence reposed on one; the confidence reposed in another person by giving him the power, which he is to keep, use or administer for another's benefit. Property under the charge of Trustee or Trustees.

Trustee – The person to whom another's property or the management of another's property is entrusted.

Underwriting – The process of accepting or declining the risk. To write one's signature at the end of (on insurance policy), thus assuming liability in the event of specific loss or damage.

Utmost good faith – A positive duty to voluntarily disclose, accurately and fully all facts material to the risk being proposed, whether requested or not.

Valuable consideration – Having material value; being worth money. A transaction carried out for consideration which has money value. An assignment of life insurance policy made for valuable consideration.

Vernacular – Using the native language or a country or place.

Waiver of Premium – The act or an instance of waiving or relinquishing voluntarily a right, claim of premium. This benefit to customer is given as a rider in insurance policy subject to certain rules.

With profit – A policy of life Insurance entitled to participate in the profits is called with profit policy. It is also called as participating policy.

X, Y & Z

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