Important Insurance Terms

A policy designed to provide coverage under a single limit for two or more items (e.g. building and/or contents), two or more locations, or a combination of items and/or locations. – Blanket Insurance 

Period between the subscription date of an insurance–cum–pension policy and the time at which the first installment of pension is received is called as deferment period. – Deferment Period 

An insurance contract that provides an annuity for a certain number of years, irrespective of whether the insured is alive or dead. – Annuity Certain 

The premiums on all policies which a company has issued in some period of time. – Written Premiums

 Insurers that are created and wholly–owned by one or more non–insurers, to provide owners with coverage. A form of self-insurance. – Captives 

A broad commercial policy that covers all liability exposures of a business that are not specifically excluded. Coverage includes product liability, completed operations, premises and operations, and independent contractors. – Commercial general liability (CGL)

Assessed when it is deemed that the defendant acted in a grossly negligent manner and deserves to have an example made of his or her behaviour so as to discourage others from acting that way. Usually imposed in addition to other damages. – Punitive damages 

Insurance that covers liability for errors and omissions, such as incorrect records or accounting. – Errors and Omissions Insurance (E & O insurance) 

Method of sharing insurance risk between several insurers. The policyholder will deal as a lead insurer who issues documents and collects premiums. The policy will detail the shares held by each company. – Co–insurance 

"Utmost Good Faith'. The basis of all insurance contracts – both parties to the contract are bound to exercise good faith and do so by a full disclosure of all information material to the proposed contract. – Uberrimae Fidei 

It is defined as the transfer of rights and remedies of the insured to insurers who have indemnified the insured in respect of the loss – Subrogation 

A form of protection which reimburses an employer for losses caused by dishonest or fraudulent, acts of employees. – Fidelity Bond.