General Insurance Terms For T

Target risk - ‘The big one’- This is an insurer’s term for large ,sometimes hazardous risk.Such as risk may well be the biggest on the schedule of risk and may thefore have to be treated schedule of risk and may therefore have to be treated separetly in other to arrange reinsurance to cover it fully.

Tariff - A premium rate,often estabalished by rating body representing the majority of insurers.Theoretically,statistic can be gleaned from wider cross section,therefore a fair premium can be worked out.Tariff tend only to exist in protected insurance market rather than in areas of free competition.

What is Temporary disablement?
Benefits payable under personal accident policies where disability in short term,measured in weeks ,as opposed to permanent.Quite often,waiting period,like a time excess is imposed before claims can be made.Temporary disablement can be total or partial.

Temporary removal
An extension to the standard Fire policy to cover property temporarily removed from insured premises for repair,cleaning of some other sated reason.

Tenants Improvements - Renovations and improvements that you make to rented premises need premises need to be insured by you.They will not be covered by the building owner because they are your interest.

Tenants Liability -Cover for damage to rented buildings.Its worth checking whether or not your public Liability policy covers this.

Territorial Limits -Do also check these under the policy liability policy to make sure they are not restricted if you need covers overseas.There may be other geographical limits to consider under All risk policies,for example:even if cover is stated as ‘worldwide,’this would normally exclude North Korea,Laos,Cambodia.

Terrorism - Fire insurance,even if extended to cover riot cover,can exclude ‘terrorism’,which is normally defined as the use of violence for political ends.The term ‘terrorism’ usually also includes any violence intended to put the public in a state of fear.A limit market does exist for this specialist cover.

Theft Insurance -This is vital part of any modern insurance programme.You would be amazed at the variety of possessions,products commodities that thieves apparently find attractive.Dont forget that even ordinary office premises nowdays contain sophiscated and expensive machines likely to attracted thieves’unwelcome attentions.Theft insurance on business premises usually limits cover to incidents involving forcible or violent entry to,or exit from,the premises.
A wider form of cover,known as full theft cover,which waives this restriction,is available for certain trades.

What is Third party liability?
Exactly the same as Public Liability Insurance,involving three parties – the insured as the first party,the insurer as second party,and the other person involved as third party.

Time-on Risk Charge - Premium charged for a period during which an insurer is holding a risk covered ,by means of a temporary cover note,for example,rather than an annual policy.
It is important to note that,if you take out an initial cover note but then a short a while later change your mind and decide to change your insurers,or your policy ,you will still have to pay the first insurer pro-rata for the time you have been insured with him since issued you a cover note.
As far as insurer is concerned,you have been covered for that time ,whether you have been paid or note,and wether or not you are still arguing about details of the cover.Had you claimed during that time,he would have honoured your claim.

Time Policy - This is one of the various types of Marine Insurance policies.A time policy is more common for hull insurance and refers to cover for a fixed period,usually not more than 12 months.

Tort -A civil breach of personal duty owed to one fellow citizens in general,as opposed to a breach of contract.The injured person has the right to damages from the wrongdoers.

What is total loss?
The complete loss or destruction of all the property insured under particular policy .Under Marine insurance,it is quite common to find a total loss only insurance.

Travel Insurance - Nobody should leave home without it,yet the vast majority of travellers do.Quite a few different covers are available,including Personal Accident,Medical Loss of luggage and money,and Personal Liability.

Turnover -The money earned for good supplied or services rendered.Insurers need to have this static when managing earnings related insurance such as Business Interruption or Products Liability,where it is a rating factor.

General Insurance Terms For S

Salvage -

This means about the same as it does in ordinary laymans language- to save damage property for futher use,thereby reducing the amount of any loss.

Salvages Charges

The expenses of recovering property by a salvor.In marine insurance,these charges would be properly apportioned between hull,the vessel itself,and cargo interest,in the event of a ship being salvaged.

Self Insurance

Some large industrial concerns prefer to set aside their own funds to cover any future losses,rather than insure with ouside insurer.It is a step which should never be taken without the benefits of prfessional advice first.

Whilst day to day losses might not prove to much of a financial burden to a really large company a truly catastrophic event,such as an earthquake,could put it out of business for lack of insurance.

Self Inflicted

Excluded under Medical Insurance as this is intentional and not accidental.

Single Article Limit

This is limit often imposed on All Risks policies for jewellery and household effect,stating the maximum amount allowable for any one item.

Slander

It may seem odd that is insurance is available against such a deliberate act libel and slander,but limited insurance market does exist,normally for the large corporations.

Travel Insurance Terms

Travel Insurance
Nobody should leave home without it,yet the vast majority of travellers do.Quite a few different covers are available,including Personal Accident,Medical Loss of luggage and money,and Personal Liability.

General Insurance Terms For T

Target risk
‘The big one’- This is an insurer’s term for large ,sometimes hazardous risk.Such as risk may well be the biggest on the schedule of risk and may thefore have to be treated schedule of risk and may therefore have to be treated separetly in other to arrange reinsurance to cover it fully.

Tariff
A premium rate,often estabalished by rating body representing the majority of insurers.Theoretically,statistic can be gleaned from wider cross section,therefore a fair premium can be worked out.Tariff tend only to exist in protected insurance market rather than in areas of free competition.

What is Temporary disablement
Benefits payable under personal accident policies where disability in short term,measured in weeks ,as opposed to permanent.Quite often,waiting period,like a time excess is imposed before claims can be made.Temporary disablement can be total or partial.

Temporary removal
An extension to the standard Fire policy to cover property temporarily removed from insured premises for repair,cleaning of some other sated reason.

Tenants Improvements
Renovations and improvements that you make to rented premises need premises need to be insured by you.They will not be covered by the building owner because they are your interest.

Tenants Liability
Cover for damage to rented buildings.Its worth checking whether or not your public Liability policy covers this.

Territorial Limits
Do also check these under the policy liability policy to make sure they are not restricted if you need covers overseas.There may be other geographical limits to consider under All risk policies,for example:even if cover is stated as ‘worldwide,’this would normally exclude North Korea,Laos,Cambodia.

Terrorism
Fire insurance,even if extended to cover riot cover,can exclude ‘terrorism’,which is normally defined as the use of violence for political ends.The term ‘terrorism’ usually also includes any violence intended to put the public in a state of fear.A limit market does exist for this specialist cover.

Theft Insurance
This is vital part of any modern insurance programme.You would be amazed at the variety of possessions,products commodities that thieves apparently find attractive.Dont forget that even ordinary office premises nowdays contain sophiscated and expensive machines likely to attracted thieves’unwelcome attentions.Theft insurance on business premises usually limits cover to incidents involving forcible or violent entry to,or exit from,the premises.
A wider form of cover,known as full theft cover,which waives this restriction,is available for certain trades.

What is Third party liability?
Exactly the same as Pblic Liability Insurance,involving three parties – the insured as the first party,the insurer as second party,and the other person involved as third party.

Three-Fourth Collision Liability
Under Marine hull insurance,this clause covers liability for damages to another vessel caused negligence of the insured vessel.This cover,which is supplementary to cover on the vessel itself ,covers up to three quarters of extent of liability.the past quarter of amount is included in the shipowner’s P & I Club cover.

Time-on Risk Charge
Premium charged for a period during which an insurer is holding a risk covered ,by means of a temporary cover note,for example,rather than an annual policy.
It is important to note that,if you take out an initial cover note but then a short a while later change your mind and decide to change your insurers,or your policy ,you will still have to pay the first insurer pro-rata for the time you have been insured with him since issued you a cover note.
As far as insurer is concerned,you have been covered for that time ,whether you have been paid or note,and wether or not you are still arguing about details of the cover.Had you claimed during that time,he would have honoured your claim.

Time Policy
This is one of the various types of Marine Insurance policies.A time policy is more common for hull insurance and refers to cover for a fixed period,usually not more than 12 months.

Tort
A civil breach of personal duty owed to one fellow citizens in general,as opposed to a breach of contract.The injured person has the right to damages from the wrongdoers.

What is total loss?
The complete loss or destruction of all the property insured under particular policy .Under Marine insurance,it is quite common to find a total loss only insurance.


Turnover
The money earned for good supplied or services rendered.Insurers need to have this static when managing earnings related insurance such as Business Interruption or Products Liability,where it is a rating factor.

General Insurance Terms For U

Umbrella Liability
Terms used mainly in the US market describing a liability policy where the limits of liability are in excess of the amount covered uner primary policy.It can also fill in gaps in cover such as a Different Conditions/Diference in Limits policy in the U.K market.

Under – Insurance
A common mistake.You have only youself to blame if you insure your property for less than its full value.

Underwriter
An insurer’s employee who decides whether or not to accept a proposal or insurance and,if so ,on what terms and conditions.
Underwriting agency
An intermediary who is allowed to underwrite and accept risk on behalf of an insurer,subject to certain laid-down criteria and limits.

Uninsurable Risks
There are many different types of insurance cover available,but some things are just uninsurable.For example,if you are a cocaine smuggler,you cannot expect any insurer to give you cover against the possibility of arrest and detention.

Ununsured/Untraced Drivers
The motor Insurer’s bureau,collectively financed by all motor insurance companies,in some countries deals with third party injury claims arising from uninured drivers and hit and run accidents.

Unoccupancy
Some policies have a condition that premises should not be left unoccupied for more than a specified time.Premiums sre set for a risk with a stated occupation on unoccupancy can result in an increased hazard.

Unspecified Valuables.
Collective cover for valuable items such as jewellery,which are individually worth less than a certain specified limit.This cover saves having to individually specify each item and if evidence of value is provided,the claim can be made up to the specified limit.

Utmost Good Faith
A duty imposed upon both parties to an insurance contract,the insured and the insurer.This legal duty implies that both parties must make full discolusure of all the facts relevant to the insurance contract before entering into it.In other words,tell the truth to the insurer ,who should also make sure you informed of the terms and conditions of the insurance.

General Insurance Terms For V

Valuations

Claims are much more easily and satisfactorily handlsed if you have valuations.With buildings,of course,you have to look at rebuilding cost than market value,as you do not insure the land.With other property,such as jewellery,it is equally important to keep valuation to update.

Valued or Agreed Value policy
This provides a pre determined fixed amount to be paid out for the loss of property.Not a very common policy unless you are collector of fine art or vintage cars.

Variable Charges
Those expenses which vary in direct proportion to business activity or volume of production,which are included as ‘specified working expenses’when calculating the sum insured under a Business Interruption policy.

Void and Voidable
A contract is considered legally void,that is invalid,if obtained by fraud or if the contract is voidable on the other hand if it can be avoided by the aggrieved party.He can get out of the contract if there has been a breach of utmost good faith.

Voyage Policy
Marine insurance covering goods for as long a they are moving from one place to another,as opposed to a Time policy where cover is simply for definite period of time.

General Insurance Terms For W

War Risk
Excluded under standard policy forms.In Marine Insurance,it can be readily included subject to cancellation provisions.In non-marine insurance,war risk tend to only be covered in a specialist market.Insurers are always wary of selection against them.In the other words,why should they grant cover if hostilities look likely when the insured did not request over when there were no problems.

Warehouse to Warehouse
This cover is quite usual under any Marine Cargo policy covering goods moving from manufactures premises to the con signee’s warehouse at the fin final destination.

Warranty
A Policy condition which,if not complied with,may have the effect of invalidating the whole the whole policy.An example is the requirement to use a burglar alarm in a jewellery shop.

Wear and Tear
Policies exclude this sort of damage.It is not accidental but inevitable with most goods.

With average
Marine cargo insurance term where cover includes partial losses.The term is now obsolete since the introduction of the Institute Cargo Clause.

Workers (Workman’s )Compensation
See Employee’s Compensation.Payment to employees injured at work under a scale of benefits set down under status in various countries.

What is Waiting Period ?

Waiting period
A period of time which must lapse after after,say,the inception of a disability,before benefits become payable.Commonly found in permanent Health Insurance Policies.

General Insurance Terms For Y

York Antwerp Rules
The treaty adopted buy major countries to determine adjustment for general average in Marine Insurance.

marine insurance terms

Life Insurance Terms W

WLRT.
See Women Leaders Round Table.

Waiver of Premium.
A provision of a Life Insurance policy which continues the coverage without further premium payments if the insured becomes totally disabled.

War Clause.
A provision excluding liability of an insurer if a loss is caused by war.

Weekly Premium Insurance.
(1) A policy the premium on which is collected weekly by an agent calling at the door. It is usually sold in small face amounts. (2) A form of Debit or Industrial Life Insurance. See also Industrial Life Insurance.

Whole Life Insurance.
Insurance which may be kept in force for a person's whole life and which pays a benefit upon his death, whenever that may be. All Whole Life policies build up nonforfeiture values, but they are paid for in 3 different ways. Under a Straight or Ordinary Life policy, premiums are paid for as long as the insured lives. A single premium policy is paid for at one time in one premium. Between these two types there are many limited-payment plans, under which the insured pays premiums for a certain period or until reaching a certain age. Contrast with Term Insurance.


Wholesale Group Insurance.
See Franchise Insurance.

Wisconsin Life Fund.
The system of state underwritten and issued Life Insurance established by the state of Wisconsin and providing Life Insurance for citizens who apply. Wisconsin is unique among the 50 states in this respect.

Women Leaders Round Table (WLRT).
An association of women Life Insurance agents who produce the volume of business required by the organization for membership. It is sponsored by the National Association of Life Underwriters.

Written Business.
Insurance on which an application has been taken out but which is not yet delivered and/or the first premium settled.

Life Insurance Terms Y

YRT.
See Yearly Renewable Term.

Yearly (or Annual) Renewable Term (YRT).
(1) Term Life Insurance that may be renewed annually without evidence of insurability until some stated age. (2) A form of Life, and sometimes Health, Reinsurance in which the reinsurer assumes only the mortality risk, which is usually calculated as the face amount of reinsurance minus the terminal reserve.

Years Certain Annuity.
See Annuity Certain.

Life Insurance Terms Z

Z Table.
A mortality table showing ultimate experience on insured lives computed from the experienced mortality on Life policies issued by major companies from 1925 to 1934. The Z Table was a step in the development of the Commissioners' Standard Ordinary (CSO) Table of Mortality.

Exclusions for MHI policies

A MHI policy also contains certain exclusions, just like other insurance policies. You must be aware what these are and if you don’t understand them, ask your agent or insurance company. Some common exclusions are the following:

• Pre-existing conditions – Conditions and illnesses experienced by you prior to applying for the policy. These conditions and illnesses would be excluded from coverage by your
insurance company. You should check with your insurance company regarding the details of pre-existing conditions for the policy that you intend to buy.

• Specified illnesses – These are defined as 12 disabilities (e.g. tumours and gastritis) and their related conditions. You will not be covered for these illnesses if the illnesses have been treated or occurred during the first 12 months of your policy.

• Qualifying/waiting period – You will not be eligible for any claim arising from any medical or physical conditions within the first 30 days of the cover, except for accidental injuries.

Cancelling your policy

You may cancel your MHI policy by giving a written notice to the insurance company. For certain types of MHI policies, you may be entitled to a certain amount of refund of the premium, provided that you have not made a claim on the policy. You can obtain details of the policy cancellation process, including the amount of premium refund, in the policy contract, or from your insurance company or its agents.

It is important that you understand the terms used in a MHI policy. If you have any doubts about the meanings of these terms, you should ask your agent or the insurance company. As a MHI policy is a legal contract, the meanings used in the policy will apply when a claim is made. Some of the more important terms are as follows (These are not the legal meanings. Please refer to your policy contract for the actual definitions):

• Pre-existing conditions – These are conditions or illnesses that existed before the effective date of a MHI policy, for which you are receiving treatment or have shown symptoms. It doesn’t matter whether you are aware of them or not. If you had consulted a medical doctor for any pain or discomfort, this would be regarded as a symptom of a disability.

• Overseas treatment – You may or may not be covered for treatment obtained overseas, subject to the exclusions, limitations and conditions specified in the policy contract.

• Misstatement of age – Your age is an important rating factor in your MHI policy. If you have misstated your age and the premium paid as a result is not enough, any claim payable under the policy will be pro-rated, based on the ratio of the actual premium paid to the correct premium that should have been charged.

• Qualifying/waiting period – Most MHI policies contain a waiting period for illness and disease, which means that eligibility for benefits under the policy will only start 30 days after the effective date of the policy.

• Residence overseas – If you were to live or travel out of Malaysia for more than 90 consecutive days, no benefits will be payable for medical treatment outside Malaysia.

• Free-look period – If you decide not to take up a MHI policy, you can cancel the policy by returning it to the insurance company within 15 days from the date of issue. You will be entitled to a refund of the full premium, after deducting administrative expenses incurred by the insurance company for issuing the policy. These expenses shall be RM50 or 10% of the gross premium paid, whichever is lesser.

Premium on renewal of policy

When you want to renew your policy, the insurance company might take one of the following decisions:
• renew the policy with a level premium;
• renew the policy with an increased premium; or
• decline to renew the policy.
The insurance company is required to provide you with the reason for its decision on a change in the premium level or why a policy is not renewed.

Importance considerations when shopping for MHI policies

This is importance consideration before you buy MHI policies:

• Shop wisely before you buy – Policies differ as to coverage, benefits and costs (i.e.premiums), and companies differ as to services. Compare before buying.

• Don't buy more than you can afford – A single comprehensive policy is better and cheaper than several policies with overlapping or duplicate coverage.

• Know whom you are dealing with – Only deal with a licensed insurance company or its authorised agents or a licensed insurance broker when you buy a MHI policy. If a person cannot verify that he or she is an authorised agent of an insurance company, do not buy from that person. If in doubt, ask for evidence of the agent’s registration or check directly with the insurance company. Please note that a business card does not necessarily mean that the person is an authorised agent.

• Get information on the agent and insurance company – Write down the agent’s and/ or the insurance company’s name, address and telephone number or ask for a business card that provides all that information. This information is important if you want to enquire, renew or claim on a policy.

• Take your time – Don’t be pressured into buying a policy. A professional insurance agent will not rush you. If you are not certain whether a policy is what you need, ask the agent or insurance company to explain it to you properly.

• Complete the application form carefully – If you decide to buy a policy, you will need to disclose material facts to the insurance company. Some insurance companies ask for detailed medical information. If you leave out any of the information requested, coverage could be refused for a period of time for any medical condition you neglected to mention. The insurance company also could deny a claim for treatment of an undisclosed condition and/ or cancel your policy.

• Look for an outline of coverage – You should be given a brochure containing the important features of a particular MHI policy, when you are approached to purchase a MHI policy. After buying the policy, you should be given the policy contract. Read the terms and conditions in the contract carefully.

• Do not pay with cash – Pay by cheque, money order, auto-debit or bank draft made payable to the insurance company, not to the agent or anyone else. Get a receipt with the insurance company's name, address and telephone number for your records.

• Notification of the decision on the application – Insurance companies must make the decision whether or not to accept your application within 30 days of the application date. If you do not receive the decision within the stipulated period, contact the insurance company and obtain in writing the reason for the delay. If 15 days go by without a response, contact Bank Negara Malaysia (BNM).

• Read your policy contract carefully – Check to be sure that a copy of the original application is attached to the policy, and that it is complete and accurately reflects your medical information. Review the schedule of benefits and make sure that the information is correct and what you were expecting. There should be no missing pages and no unexpected riders or exclusions in the policy.

Important: Your policy is a legally binding contract. If you have questions about it, call the insurance company and get the questions resolved during the 15-day ‘free-look’ period.

How do I buy a MHI policy?

You can buy a MHI policy directly from the insurance company, or through its authorised agents, licensed insurance brokers (generally or group MHI policies), or banks/ financial institutions which have bancassurance arrangements with insurance companies.

Where can You get a MHI policy?

You may get a MHI cover through:
• a group plan at work, where your employer pays the premiums or you pay the premiums on your own. If it is a group plan sold under a scheme, you should get the details on terms of the arrangement between the organiser of the scheme and the insurance company especially on terms of continuity of the scheme. Also, please ensure that the insurance cover offered under the scheme is provided by a licensed insurance company; or
• buying an individual plan on your own. Individual insurance generally costs more than group insurance, but you may be able to customise your MHI plan to meet your needs according to your financial capability.

What is Health Insurance?

Medical and Health Insurance or known as (MHI), is an insurance policy which is designed to cover the cost of private medical treatment, which can be very expensive, especially with hospitalisation and surgery. MHI also ensures that you won't have to worry about the cost of seeking treatment during emergencies. In addition, MHI also provides you with an income stream while you undergo treatment.

Health Insurance Terms L

LPRT
See Leading Producers Round Table.

Large Claim Pooling
A system designed to help stabilize premium fluctuations in smaller groups. Large claims (those over a stated amount) are charged to a pool contributed to by many small groups who belong and share in that pool. The smaller the group of groups, the lower the pooling level. Larger groups will have a larger pooling level.

Leading Producers Round Table (LPRT)
An organization of agents who qualify for membership annually or on a lifetime basis by producing certain high levels of Health Insurance premium volume in a year. It is sponsored by the International Association of Health Underwriters.

Legend Drug
A drug which has on its label "caution: federal law prohibits dispensing without a prescription."

Length of Stay (LOS)
The total number of days a participant stays in a facility such as a hospital.

Line Slip
A document (most commonly used at Lloyd's) which describes a risk to be insured. It is circulated by brokers, and underwriters subscribe to it by indicating what percentage of the risk they are willing to take.

Living Benefits Rider
A rider attached to a life insurance policy which provides LTC benefits or benefits for the terminally ill. The benefits provided are derived from the available life insurance benefits. (H)

Living Need Benefits
A combination of life insurance and long-term care insurance which allows life insurance benefits to generate long-term care benefits. Up to a certain percentage of the life insurance policy's death benefit may be used in advance to offset nursing home or medical expenses, reducing the face amount of the life policy.

Long Term Care (LTC)
Care which is provided for persons with chronic diseases or disabilities. The term includes a wide range of health and social services provided under the supervision of medical professionals.

Long Term Care Facility
Usually a state licensed facility which provides skilled nursing services, intermediate care and custodial care.

Long-Term Disability Insurance
A group or individual policy which provides coverage for longer than a short term, often until the insured reaches age 65 in the case of illness and for the remainder of his lifetime in the case of accident. See also Short-Term Disability Insurance.

Loss-Of-Income Benefits
Benefits paid for inability to work for remuneration because of disability resulting from accidental bodily injury or sickness. The loss of income may be real or presumptive.

Loss of Income Insurance
Insurance paying loss of income benefits.

Loss of Time Benefits
See Loss of Income Benefits.

Loss of Time Insurance
See Loss of Income Insurance.