Insurance Terms for Viva-Voce
Annuity: An agreement by an insurer to make periodic payments that continue during the survival of the annuitants or for a specified period.
Broker: Insurance salespersons that search the marketplace in the interest of clients, not insurance companies.
Claim: A demand made by the insured, or the insured’s beneficiary, for payment of the benefits as provided by the policy.
Hazard: A circumstance that increases the likelihood or probable severity of a loss.
Indemnity: Restoration to the victim of a loss by payment, repair or replacement.
Insurable interest: Interest in property such that loss or destruction of the property could cause a financial loss.
Policy: The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clause, riders, endorsements, and papers attached thereto and made a part thereof.
Premium: The price of insurance protection for a specified risk for a specified period of time.
Reinsurance: In effect, insurance that an insurance company buys for its own protection.
Subrogation: The right of an insurer who has taken over another loss also to take over the other person’s right to pursue remedies against a third party.
Underwriter: The individual trained in evaluating risks and determining rates and coverages for them Also, an insurer.
Beneficiary: A beneficiary is a person who is entitled to receive distributions from a trust, will or life insurance policy.
Coverage: The range of protection provided under a contract of insurance; or any numerous risk covered by a policy.
Surrender Value: This refers to the value payable to the policyholder in case of him deciding to terminate the policy before the maturity of the policy.
Whole life insurance: whole life is a permanent type of insurance designed to provide coverage for your lifetime.
Term life insurance: Term insurance only provides coverage for a specific period of time.
Endowment policy: It’s a life insurance agreement which offers to pay a lump sum cash after completion of specific terms: on its maturity or on the death of the policyholder.
Standard risk: The classification of a person applying for a life insurance policy who fits the physical, occupational and other standards on which the normal premium rates are based.
Substandard risk: The classification of a person applying for a life insurance policy who does not meet the requirements set for the standard risk.
Mortality table: Mortality table is such data which records the past mortality and is put in such form as can be used in estimating the course of future data.
Insurance: A co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to insure themselves against that risk.
Marine insurance: Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which the property is transferred, acquired, or held between the points of origin and the final destination.
Peril: A peril is a cause of a loss.
Jettison: Jettison means voluntary throwing away of the cargo or part of a vessels equipment for the lightening or relieving the ship for common safety.
Barratry: Barratry includes every wrongful act willfully committed by the master or crew the prejudice of the owner.
Total loss: A loss of sufficient size that it can be said no value left. The complete destruction of the property.
Fire insurance: Fire insurance is property insurance covering damage and losses caused by fire.
Risk: Risk includes all situations in which there is an exposure to adversity.
Dynamic risks: Dynamic risks are those resulting from changes in the economy.
Static risks: Involve those losses that would occur even if there were no changes in the economy.
Fundamental risks: Involve losses that are impersonal in origin and consequence.
Particular risks: Involve losses that arise out of individual events and are felt by individuals rather than by the entire group.
Pure risks: Pure risk is used to designate those situations that involve only the chance of loss or no loss.
Speculative risk: Describes a situation in which there is a possibility of loss, but also a possibility of gain.
Risk sharing: Reducing risk likelihood or impact by transferring or otherwise sharing a portion of the risk.
Risk reduction: Action is taken to reduce risk likelihood or impact or both.
Risk financing: The mechanisms for funding risk mitigation strategies and/or funding the financial consequences of risk.
Risk avoidance: Avoiding the activities giving rise to risk.
Risk acceptance: No action is taken to affect risk likelihood or impact.
Contributor: ATKIA REZWANA ILA
From Mawlana Bhashani Science & Technology University