Glossary of Terms

Adjustable Policy
An insurance policy which has no determined value at risk and for which a set premium is paid. This premium is changed at the end of the period of insurance accordingly.

Annual Premium
The policy fee, benefits and premiums specified in the policy schedule.

Benefits
The reimbursement provided by the insurance holder.

Commission
The portion or percentage of the insurance policy premium paid per month which is given to the insurance broker as payment for their services.

Effective Date/Inception Date
The date of commencement from which an insurance policy starts.

Insurance Policy Period
The time period from the start to the finish of the insurance policy during which the insurance is valid.

Insurance Policy Expiry Date
The date on which the insurance policy expires and is no longer valid. The day is governed by the exact date and time at which the last paid premium has run out.

Comprehensive Coverage
A type of insurance covering physical damage to a car, household, business or any other insured items. These include damage by weather, criminal activity such as theft and natural disasters such as flooding.

Per Occurrence Limit
The maximum limit (also known as a cap) which can be paid out per single claim made on an  incident, for example, the maximum amount paid for a household contents damaged by a fire.

Insurance Policyholder
The individual in ownership of an insurance policy who may or may not be the person covered by the policy.

Insurance Renewal
When an insurance policy is kept active after the policy expiry date. This is done through completion of a policy renewal.

Term
The time period during which an insurance policy is valid.

Insurance Premium
The payments or installments required for insurance cover over a specified time period. Premiums are usually paid on a monthly basis which are known as a monthly premiums.

Insurance Claim
When the insured policyholder submits a claim to the insurance company against damages incurred on the insured car, piece of property or other insured items.

Lapsed Insurance Policy
An insurance policy which has been invalidated due to lack of payment of insurance premiums.

Monthly Premium
An insurance premium paid on a monthly basis.

Moneyweb News
Moneyweb News at the bottom of the page offers you a direct link to articles on the Moneyweb site.