Hilton Insurance Services Dictionary

You can also check the Insurance Bureau of Canada page The Language of Insurance Translated at http://www.ibc.ca/en/Need_More_Info/Glossary/A.asp

At Hilton Insurance Services we understand that the language the insurance industry uses is sometimes quite overwhelming. For that reason we have started a Dictionary of Insurance Terms to help our clients out. In the future we will continue to add to this page.

And remember, if you have any questions, please ask! That’s what we’re here for!

Abandonment – When the owner voluntarily surrenders their right, title, claim and possession of their property with no intention of ever reclaiming it.

Absolute Liability – Responsibility without fault or negligence.

Abutting Owner – The owner of land which abuts or adjoins upon the property of another.

Act of God – Any act occasioned by nature that is without human intervention and that could not have been prevented by reasonable care or foresight.

Bad Debt – A debt that cannot be collected.

Beneficiary – The receiver of benefits. In insurance this is the person who receives benefits upon the death of the insured.

Bequeath – The act of giving personal property in a will.

Bid – A formal offer to perform work or supply support for recompense.

Capital – Assets used for the production of products or wealth.

Civil Nuisance – Anything done to annoy or hurt the lands or property of others.

Claim – A demand by an individual or legal entity to recover monies under an insurance policy.

Clear – Free from obstruction or debt.

Death Benefit – Amount paid in a policy in the event of death of the principal.

Decree –Judgment from the court.

De Facto – In fact or indeed.

Dividend – A portion of a company’s profits paid back to the shareholders.

Earned Premium – The difference between the amount paid by the insured person and the amount the insurer must pay if the policy is cancelled.

Easement – A right of way. The right of people to use land belonging to another.

Enable – To give the power to do something to someone.

Evidence – Those things offered to prove existence or non-existence of a fact.

Fair Market Value – Price of property between a willing buyer and a willing seller. Also known as “market value”.

First Policy Year – The year beginning when the policy is issued.

Freight – The price paid to transport goods.

Frontage – Property line where the property touches the street.

General Agent – An agent authorized to act in all matters concerning a specific business or employment.

Gradual Deterioration – When an object deteriorates due to the passage of time alone.

Guarantor – Someone who is secondarily liable for another’s debt or performance.

Guardian – An individual to who control is given over the care and management of a person or estate.

Hazard – The risk or danger that the event insured against might happen.

Heirloom – Personal property handed down through generations of a family.

High Seas – The part of the seas beyond the jurisdiction of any country.

Holdback – In a contract the amount which is not payable until the contract is completed.

Improvement – An addition to a property that enhances its value.

In Common – Something shared by several individuals for the equal use of all concerned.

Indivisible – Something that is not subject to division or separation.

Instrument – In legal terms a written document.

Jewelry Floater – A policy element referring to jewelry.

Joint Venture – A partnership which terminates upon the completion of the project.

Just Cause – Reasonable cause.

Juvenile – A person who has not reached his or her age of majority.

Key Man Insurance – Insurance that protects companies against loss upon the death or disability of an employee. Also refers to a partnership which provides funds to buy out a partner upon death or disability.

Kind –Class or grade.

Kinnie Rule – Used by adjusters to determine losses between non-concurrent policies.

Knowledge – Being acquainted with the facts.

Landlord – One who owns property and leases it to another person or persons.

Latent Defect – A concealed defect which could not be discovered by customary inspection.

Lessee – One who rents property from another.

Liable – Responsible or actionable.

Maintenance – Up-keeping and preserving a property.

Market Value – The highest price a willing buyer and seller would accept.

Minor – Person under the age of legal competence.

Modify – To alter or change.

Named Insured – The person named in the policy.

Negotiable – Transferable by endorsement.

Net Profit – Profit after deduction of all expenses.

Notary Public – An individual appointed by the Lieutenant Governor and who is authorized to administer oaths and attest to signatures.

Oath – An affirmation of truth of a statement.

Obligor – The person (or persons) who are obligated under a contract or bond.

Oral Contract – Contract with spoken components as opposed to written ones.

Outbuilding – Building used along with a main building, most often separated from it.

Out of Pocket Expenses – Expenditures that are usually paid with cash on a casual basis.

Paid Loss – The losses paid by the insurer during the specified time.

Partial – Not total.

Partnership Insurance – Life or health insurance purchased for a business partner to continue the business after death or injury.

Permission – Legal authority to do a thing.

Qualification – A person’s qualities that make him or her eligible to fill an office or perform a duty.

Quick Assets – Liquid assets which can be converted into cash quickly.

Quitclaim – Giving up a claim or title.

Quote – The premium required by the insurer to insure for a particular risk.

Rebate - Discount in the premium of a policy intended as an inducement.

Relative – One person who is connected to another by blood or affinity.

Replacement Cost – The cost of replacing or repairing (whatever is least) the property on the same site with a property of like kind. The replacement cost does not consider deduction for depreciation.

Rural – The country as opposed to the city.

Selection – An underwriting term to describe the process of analyzing risks.

Settlement Options – Alternatives offered to the insured or his beneficiaries when dealing with a claim.

Summons – A writ delivered to a person advising that a legal action has commenced. A summons also requests that person’s attendance on a specific time and date.

Surety – Someone who guarantees to pay money if a principal fails.

Termination – The expiration of a policy according to the terms.

Title – Document showing possession.

Trade Secret – That which is used in business to maintain a competitive edge.

Trust Fund – Money or property held by a trustee.

Uberrima Fides – A term for the perfect good faith with which an insurance contract must be made. Nothing must be concealed.

Unavoidable Accident – One resulting without fault.

Undertake – To assume an obligation.

Unliquidated Claim – A claim which is in dispute.

Vacant – Empty of contents. Abandoned.

Valuation – The act of determining the value of something.

Venture – A business speculation.

Void – Having no legal force.

Warranty – A promise that certain facts are true.

Worth – The value of something.

Write Off – To remove an uncollectible debt from an account.

Written Law – Also known as statutory law.

Year – Twelve calendar months.

Yield – To relinquish. To give up or surrender.

Zoning – Dividing of a community into districts by regulations.

Zoning Permit – Documents issued by the authorities regarding the use of a parcel of land.

Also check the Insurance Bureau of Canada page The Language of Insurance Translated at http://www.ibc.ca/en/Need_More_Info/Glossary/A.asp