Flashcards in Glossary Deck (12)
A person or company authorised by one party, termed the 'principal', to bring that principal into a contractual relationship with another, termed the third party.
Agreed value policy
The value of the subject matter of insurance, in the event of a total loss, is agreed originally at the start of the insurance and the sum insured is fixed accordingly. It is customary for the value to be reconsidered at each renewal.
Association of British Insurers (ABI)
The largest of the market associations, formed in 1985 as the principal body representing insurers carry on life and non-life at each renewal.
British Insurance Brokers Association (BIBA)
A non-statutory body, or trade association, representing the interests of insurance brokers.
The termination of a contract of insurance before its expected expiry or renewal date.
A term of a contract going to its very root
Some right, interest, profit or benefit accruing to on party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other. In an insurance contract it is an exchange of promises; the premium is paid by the insured who agrees to abide by the policy terms; the insurer promises compensation if defined contingencies occur.
An individual who is acting for the purposes which are outside their trade, business or profession.
An agreement, enforceable by law, between two or more persons to do, or abstain from doing, some acts or acts, their intention being to create legal relations and not merely to exchange mutual promises.
Contract certainty is achieved by the complete and final agreement and final agreement of all terms (including signed down lines) between the insured and insurers before inception.
The right of an insurer to recover part of a claim where two or more policies cover the same interest, the same risk and are in force when the loss occurs.