Definitions

Accident insurance:
Insurance which pays a benefit to a named beneficiary in case of an accident, as a result of which the insured becomes permanently or temporarily disabled for work or dies.

Addendum:
A sheet added to the policy stating any changes made or additions to the policy.

Annuity:
A life insurance entitling the insured to periodic benefits, for example to supplement a pension.
 

Back-to-back policy:  Insurance covering the risk of premature death with certain contracts such as a mortgage.

Beneficiary:
The person named in the policy as the person entitled to receiving the benefit.

Bridging pension:  A government pension and bridging pension is sometimes awarded in case of dismissal before the pension date.

Broker:  An agent who negotiates the terms of the contract to be signed by the two parties.

Capital sum insurance:
Life insurance that pays out an insured benefit only if the insured is alive at the end of the policy term.

Cancellation: This term means that the insurer has the right under the policy conditions to cancel the insurance policy early, whether or not a claim was filed, as long as the notice period agreed upon in the policy is met.

Cash value:
The value assigned to a benefit, to be received at a given time in future, .

Change of agency / broker:
Term used if a client changes to another agent or broker.

Clauses:
The parts of a contract that describe the conditions under which the terms of the contract is agreed upon.

Combined policy:
Policy that covers more than one type of insurance; usually taken out with Home or Content insurance.

Contract expiration date:
The date on which a contract expires either definitively or on which it is automatically renewed for the same period of time.

Contract term:
The fixed period of time that the insurer and the policy holder have agreed that the contract will last.

Content insurance:
Insurance covering the contents of your home against fire, burglary, storm, etc.

Conversion into paid-up policy:
The paying off an active life insurance so that the policy holder no longer makes premium payments.

Custody clause:  Clause used with some types of life insurance, i.e. educational insurance.  If the head of the household passes away, the premium payments are continued by the insurance company.

Decreasing term life insurance:
Life insurance available to people who have a mortgage or other debt. As payments proceed, the debt decreases.
 

Educational fees insurance: Life insurance on a parent or guardian of a child whereby a capital sum is paid out on an agreed upon date. It covers the costs of the child's education or training.

Employee benefit: Common name for the complete package of benefits that an employer offers its employees. The package covers all personal benefits available to the employee  that are related to all possible benefits an employer can offer its employees.

Endowment insurance: Life insurance that pays capital benefit if the insured is alive on a pre-determined date or upon the death of the insured.

Entitlement to benefit:
Clause in the policy that stipulates the insured named in the policy is entitled to the benefit.

Excess: A term that applies and comes into effect when the insured makes a claim against the policy.

Fire insurance:  Insurance covering damages due to fire.

Funeral expenses insurance:   Life insurance that pays out an insured sum  for the purpose of covering the cost of a funeral or cremation.
 

Glass insurance:
Insurance covering breakage, and in some cases damage, to mirrors, window panes and other glass objects.


Group insurance:
An agreement that includes the insured in a collective insurance policy because the insured belongs to a group.

Healthcare insurer:
Term for insurance companies that provide coverage for risks and costs associated with medical cases and incidents.

Health statement:
A statement describing an insured person's health that is required for certain types of life and medical insurance. 

Household contents:
All movable items contained in a house including furniture, furnishings and personal effects.

Indexing: Method of adjusting the value of the insured object to the object's current cost.

Inheritance insurance:
Special form of life insurance on the testator. The insurance pays out a capital sum to the underage children of a deceased parent or to the widow/er after the death of the spouse to cover any inheritance tax due on the deceased's estate.

Insurance brokerage:  Common name used for the work of an insurance broker.

Insured sum:
The sum stated in the policy that covers the insured interest.

Insurer:  A company that conducts insurance business for its own account and risk.

Liability insurance: Insurance that covers the insured against a claim for which he is held liable for by others. The maximum insured sum per event is stated in the policy.

Life insurance: A contract agreeing on the payment of a benefit on the life or death of the insured.

Life insurance mortgage:
Type of mortgage whereby the principal is not repaid for the term of the loan. Interest is paid on the full amount of the principal during the loan's term, however, the mortgage is linked to a life insurance that repays the loan at the end of the term or if the insured passes away prematurely. The interest rate earned on the savings element is equal to the mortgage interest rate.

Limited Vehicle insurance:
Insurance that provides limited coverage for loss or damage to a vehicle.

Loss prevention: Measures to prevent or limit a loss.
 

Occupational disability insurance (ODI): Insurance that provides a periodic benefit if the insured becomes disabled and cannot work due to an accident or a medical condition.

Ordinary life assurance:
Life insurance where the insurer pays out only when the capital benefit equals the insured sum stated in the policy.
 

Package policy:
Policy covering more than one risk under a single policy instead of under separate policies.

Passenger insurance:
Personal accident insurance for the occupants of insured vehicle.

Past service: The purchase of pension rights over past service years.

Pension gap:
Loss of pension rights due to change of employer.

Pension clause:
Clause in a capital sum insurance policy stipulating that the capital sum payable at maturity must be used as a lump sum payment to purchase an immediate pension.

Pledging:
The insured's right to borrow from the life insurer against the policy of the insured.

Policy:
The contract between an insurance company and the insured stating the written insurance agreement between the two parties.

Policyholder:
The person or company that enters into an insurance agreement with an insurer as the other party. The agreement may be entered into on behalf of the policyholder or another party interest in the interest of the insured.

Premium:
Compensation paid by the insured in return for the insurer carring the risk.

Premium deposit:
A deposit from which periodic premiums are paid when they are due. The sum is deposited by the policyholder with a life insurance company.

Premium due date:
The date on which a premium is due and payable or on which a contract terminates or is renewed.

Professional liability: Liability arising from professional error or negligence.

Property insurance:
Insurance that covers the building, and foundations if included, for damage caused by events such as fire, explosion or lightning strike.

Proposal:
An offer from the insurer or broker for an insurance product.

Provisional coverage:
Provisional coverage is sometimes provided prior to the insurer having accepted an application for insurance; for example, in anticipation of an inspection report or fully completed application form.

Renewal:
Renewal if the old policy cannot be renewed for certain reasons.

Risk premium:
The part of the annual premium for a life insurance that covers risks resulting from death.
 

Savings element of the premium:
The part of the annual premium paid for life insurance that serves to build the capital sum payable at a future date.

Savings insurance:
The share of a life insurance not covering the risks resulting from death, but which serves to build the capital sum payable at a future date.

Scorching damage:
Damage due to scorching, i.e. material damage caused by extreme heat without the object catching fire.

Single premium:
A lump sum deposit made in order to accrue capital, for example, to finance a supplementary pension.

Smoke damage: Damage caused by smoke from a fire. The affected objects have not been touched by flames and do not need to be located in a building owned by the insured.

Sums insurance:
Also known as personal insurance because the insured entity is a person, not an object that can be valued in monetary terms. An agreed sum is paid out in the event of an accident, death or permanent disability.

Surrender: The right to terminate a life insurance policy.

Surrender value: The amount paid out in cash when a life insurance policy is surrendered.

Tax deductibility of insurance premium:
A company can usually deduct the insurance premiums it pays as an operating expense. Private policyholders can deduct annuity premiums and AOV (General Old Age Pension Act) premiums on their income taxes.

Underinsurance:
Insurance in which the coverage provided is lower than the actual value of the insured object.

United linked insurance: Life insurance developed in the United Kingdom in the form of a savings insurance with additional individual annuities. The savings element of the premium is invested by external investment experts in selected investment funds, including bonds, shares, property, etc., which are available to the policyholder with the option to switch them during the term.  The policyholder retains some control over the investment, but there may be an investment risk.

Unit-linked savings plan: Savings plan based on life insurance linked to equity investment.

Valuation report: A report prepared by a certified valuator estimating the value of the insured object or property.