following are typical terms found in an insurance policy:
premium is the annual cost of the policy and the consideration for
the contract. The amount charged is based on the probability of the
insured against event happening.
cover note is a temporary policy provided by the insurance company
until the formal papers are completed. It is known as a policy
document or interim contract of insurance in s11 Insurance of
Contracts Act 1984. It gives the insured the immediate benefit of
insurance while the insurer assesses the proposal and decides whether
or not to accept the risk. Generally, the cover note is subject to
the terms and conditions of the company's policy as the company's
usual policy are binding on the insured irrespective of whether or
not he/she is aware of them.
are usually issued for a period of 12 months and are renewed
annually. If the insured agrees to the renewal he/she is issued with
a renewal certificate that states that on payment of the premium the
insurance cover will continue according to the original policy for
another 12 months.
are defined in a typical householders and houseowners policy as "the
dwelling, private boarding house and/or residential fiat and all
domestic outbuildings (including landlord's fixtures and fittings) at
the situation". In a typical comprehensive investment property
policy "buildings" also include lifts, elevators,
escalators, fixed appliances and other structural domestic
are defined in a typical householders and houseowners policy as
"household goods, fixtures and personal effects, including only
to the extent described in the policy".
insurance terms – plain english policy