Glossary of insurance terms

Destruction or damage caused by violent external means.

An event which is not the fault of any individual. Acts of God can be insurable.

Enter the age of the client. Many insurers provide a discount for clients aged 50 or over. Some insurers will load premiums for those aged 30 or less, or may even not quote.

Select Yes or No depending on whether or not the residence is fitted with alarm? Please check that the alarm is fitted and regularly maintained by a 'NACOSS' member, as most insurer's will not give their usual discounts unless proof can be given.

Wider cover than given under a normal property insurance policy. Covers any loss or damage apart from exclusions stated in the policy. Commonly the term now used is Personal Possessions cover and this avoids confusion.

Some insurers base the premium upon the number of bedrooms in your property. You must count all rooms if they were designed as bedrooms (even if you no longer use them as such).

Covers you in the event of damage being caused to your buildings accidentally. For example putting your foot through the ceiling whilst you are in the loft.

The Building Sum Insured is usually the re-building cost i.e. the amount it would cost to rebuild your home in the event of it being totally destroyed (say by fire).

The private house or self- contained flat at the address appearing in the schedule which shall include its domestic outbuildings, garages, greenhouses, tennis courts, swimming pools, terraces, patios, drives, footpaths, walls, gates, fences, hedges and including landlords fixtures and interior decorations forming part of the property on the same site.

A policy covering the structure of a house or other building against a number of different risks.

Shows the premium quoted for Buildings.

Some household policies allow you to cover a caravan and its contents for an additional premium, thus avoiding the need for a separate caravan policy.

Document issued by insurers as evidence that insurance is in force to meet the requirements of the law (notably for motor and employers' liability insurance).

When a policyholder or beneficiary seeks payment or settlement under the terms of a policy.

Check this box if the client has had any claims in the last 5 years. You will then need to provide full details of the claim, by clicking on the claims button.

Normally a policy which combines cover for buildings and for contents into a single contract

Shows the premium quotes for the combined Buildings and Contents (if selected).

Money paid by an insurance company to a broker/ independent intermediary/agent for selling policies

Shows the product name of the policy.

Part of a policy stating that certain rules must be followed, for example, the duty to take reasonable care to protect property, or to report claims to the insurance company promptly.

Insurance covering the loss of profits of a business and certain other costs resulting from fire or other insured event (also known as Business Interruption).

Check this box if the property is of standard construction. This means that the property is built of brick, stone or concrete and roofed with slates, tiles or concrete. Any flat roofing should be referred to CETA.

Household goods, furniture, furnishings, appliances, clothing, valuables, personal effects and money owned by the client or his/her family and in private use, fixtures, fittings and interior decorations for which your client or his/her family are legally responsible as occupier, visitors personal possessions provided they are not otherwise insured.

Covers you in the event of damage being caused to your contents accidentally. For example dropping a tin of paint on a carpet whilst decorating.

A policy covering the contents of home a against a number of different risks.

Shows the premium quoted for contents

The Contents Sum Insured is the total amount of cover required to replace all your belongings, in the event of everything being destroyed.

A document giving temporary evidence of cover while the policy and certificate are being prepared.

Pays out a lump sum on the diagnosis of certain life-threatening illnesses specified in the policy.

Enter the date of the claim, for example 15/01/2007

A compulsory class of insurance which most employers must have to cover them against claims by employees who are injured at work.

An amount of money which the policyholder has to pay towards the cost of each and every claim, for example, the first £50.

Specified property, person or event which the policy does not cover.

These yellow boxes contain the total value of the Extra items that the client wishes to insure. Click on the Specified button to enter the details.

Five Star provides cover for personal accidents in and around the home as well as an emergency assistance service covering plumbing, electricity, security and heating.

Enter the amount of freezer contents cover that is required. Some policies include this at no extra charge.

Insurance of (non-life) risks where the policy offers cover for a limited period, usually one year.

A document issued to policyholders motoring abroad as evidence that they have the minimum insurance cover required by the law of the country visited. Not essential for European travel, because minimum legal cover is automatically included in UK policies.

A policy covering certain risks connected with holidays. Usually includes cover for the costs of unavoidable cancellation, personal accident, medical treatment abroad and lost or stolen luggage. More usually described as Travel Insurance

If your client is moving house then you have the option of adding Home Buyers Legal Protection to their policy.

This insurance provides them with legal assistance for up to 1 year after they move house for an entire range of problems that might occur. For example problems with Solicitors, Banks, Removal companies etc.

Home insurance is their to protect your buildings and sometime contents.

By protecting yourself with home insurance you reduce stress and anxiety cause when disater strike in and around your home.

House insurance is another term for home insurance.

House insurance is there to protect your property after a accident or natural disater strikes.

Check this box if the client is a home owner. Some insurers will not insure people who are renting their property.

The principle by which policyholders are put in the same financial position after a loss as they were immediately before it.

Where the sum insured automatically increases either in line with inflation or some other relevant index (for example the house rebuilding cost index).

Insurance where the amount of cover changes automatically in line with an index. Examples are the cost of rebuilding a house or replacing its contents.

Policies arranged by an individual providing for the payment of income during a period of incapacity due to ill health or accident. The benefit is paid to the policyholder until he/she is able to return to work, or until retirement.

The initials of the client.

A service that offers financial compensation for something that may or may not happen. Originally the term assurance was generally used for life insurance, but now the two words are interchangeable.

A company that takes on risks under the policies it sells in return for the payment of premiums. Companies may be "mutual" (owned by the policyholders) or "proprietary" (owned by the shareholders).

The amount paid by the policyholder for insurance.

A government tax imposed on most insurance premiums.

Covers the cost of legal proceedings in circumstances defined in the policy.

Legal responsibility for causing loss to someone else by injuring them or damaging their property.

Householders - like everyone else - have a duty to exercise reasonable care in everything they do. If you are careless or negligent, and injury or damage results to someone else or their property - then you could be held "legally liable" - perhaps for a great deal of money. Contents and buildings policies cover you against this risk. The buildings policy covers you as owner of your home while the contents policy covers you as its occupier.

Is the building listed. Some insurers will not cover listed properties, others will require an up to date RICS valuation.

An insurance market organised into syndicates, which underwrites most types of policy.

• Are all external doors secured by a deadlock?
• Are all external doors (other than the final exit door) also fitted top and bottom with key operated security bolts?
• Are all accessible windows fitted with key operated window locks?

A person, independent of an insurance company but engaged and paid by it, who checks that a claim is covered and negotiates with the policyholder the amount payable for a claim.

Loss adjusters are independent experts with a good knowledge of the area in which they operate. They are skilled in assessing claims and in advising on the best repair and reinstatement methods. They will recommend to the insurance company the way in which your claim should be settled.

A person who negotiates claims on behalf of policyholders.

Covers against the cost of breakdowns of household appliances or motor vehicles.

Some insurers require the installation of approved alarm and/or minimum security fittings. Check whether this applies. You may qualify for a discount from the premium if you already have good security.

Doors Outside doors should have deadlocks which at least conform to BS3621. These locks can only be opened by key. A burglar cannot just use a plastic card to push back the tongue of the lock or break a glass panel and reach in to open it.

Doors which you usually lock from the inside - for example the back door - should also be fitted with bolts. Double doors should have bolts (preferably security bolts with removable keys) at the top and bottom of both doors as well as a lock.

On patio doors, additional security locks should be fitted to stop the slicing frame being lifted off the tracks. The sliding leaf of patio doors should be fitted on the inside.

Windows Most burglaries are through windows. Key operated locks should be fitted to all accessible windows - those on the ground floor and those near drainpipes and flat roofs. These locks are inexpensive to buy and easy to fit.

In all cases security devices must be in operation whenever members of the insured's household have gone to bed for the night or when no one is at home. The keys to doors and windows should be removed from the locks and be kept in a concealed location, but be ready for use in the event of an emergency,

(the definition may vary from insurer to insurer and the exact wording should be checked in the policy booklet)

Enter the amount of cover for Money and Credit Cards. £250 to £500 is usual within a policy and many Insurers include this within the price.

Cover for monthly mortgage repayments in the event of accident, sickness or unemployment

A life insurance policy which covers the outstanding amount of mortgage if the policyholder dies before the loan is repaid.

Covers legal liabilities arising from the use of a motor vehicle. Comprehensive policies also cover damage to the vehicle.

Use these buttons to move from one part of the system to another.

A police approved Neighbourhood Watch scheme of which the policyholder is a member.

Cover for property where an item lost or destroyed would be replaced with a brand new one, with no deduction for wear and tear. Also called "replacement as new".

A reduction in a renewal premium to reflect a claim-free record; used most often in motor insurance.

This discount is only available, based upon the number of claim free years insurance has been held

Neighbourhood watch, Select Yes or No depending on whether or not your client belongs to a neighbourhood watch scheme? This must be an official neighbourhood watch scheme run in conjunction with the local police.

Some insurers will provide a discount depending on whether or not the property is occupied on a regular basis during weekdays.

This list holds the main type of occupation which the insurers will decline. If your clients occupation is on this list then you should choose it.

Accidents often occur around the home, for example a visitor to the house trips over a loose carpet tile and injures themselves.

Personal injury cases in particular can cause substantial claims.

Occupier's Liability cover is part of the Contents Insurance.

There are a number of other discounts which may apply.

Buildings outside the house, for example a shed, greenhouse, stables.

Sometimes a claim can arise because of the negligence of the policyholder (or a member of the household). Someone could be injured or suffer property damage and the policyholder would be liable.

Imagine, for example, that a loose tile falls off the roof and injures a member of the public, the claim could be substantial.

Cover for owner's liability is part of the Buildings Insurance.

You should select Pedal Cycle from the Specified Item drop down boxes. The total number and value of pedal cycles will then be shown at the foot of the screen.

A policy which pays specified amounts of money if the policyholder is injured in an accident. Depending on the type of disability, the payments may be made weekly, for a set period, or as a lump sum.

Most insurers will provide cover for items which don't have a high individual value. This would cover clothing and personal effects, jewellery, watches, furs, photographic equipment, binoculars, cellular phones, musical instruments, sports equipment, luggage, toys, portable radios and televisions up to a pre-defined limit. For example £3,000 of cover as long as no single article is worth more than £1,000.

Any policy taken out by an individual in his/her private capacity

These are articles normally worn, used or carried about in every day life. We define them as clothing and personal effects, jewelry, watches, furs, photographic equipment, binoculars, cellular phones, musical instruments, sports equipment, luggage, toys, portable radios, televisions and pedal cycles.

Please note some of the above items have to be specified on the quote system as there are different ratings for different companies. i.e. pedal cycles, video cameras, musical instruments.

A limit on the amount of cover that an Insurer is prepared to offer.

For example the valuables limit may be one third of the contents sum insured. The insurer is not prepared to insure the contents where there are valuables exceeding this amount.

The policy wording explains exactly what cover is provided by a policy. You should always refer to the policy wording if you need to check if a particular cover is available.

In most cases the policy wording is contained within a booklet (the policy booklet) which is sent to the customer with a schedule.

Person or organisation to whom the insurer issues the policy. Normally the person to whom benefits are payable.

Enter the full Post Code: OX7 5SR - Don't forget the space in the middle and remember to use a the letter O or zero correctly.

This is the main rating factor for the insurers and you cannot obtain a quotation without entering a valid post code.

Our post code database holds 9500 postcodes up to sector level, however, there may be the occasional change by the post office which has not yet been notified to the insurers. Not every insurer will provide a rating for every area.

The amount paid by the policyholder for insurance.

The number of years that insurance has previously been held.

Most insurers will give a No Claims Discount and this is based on the number of claim free years for which the client has been insured. In order to qualify for the discount you will need to know the previous insurance details when completing the proposal.

The system will allow you to print out the list of quotations and the details of any particular product.

It is also possible to view and print the underwriting notes, which in effect are a summary of the cover that a policy will provide and the principal exclusions.

A policy which covers the cost of private medical treatment.

Protects professionals against liability claims resulting from negligent work.

Select the type of property. Many Insurers do not cover certain types of property, flats for example.

The proposal button will enable you to complete the proposal for the currently selected policy.

An application for insurance cover.

It is important that you answer these questions in full as they will form the basis of the Insurance contract. It is possible to omit the start date and CETA will still process the proposal and will hold the case pending confirmation of the start date.

If you are unsure of any point, or wish to disclose some other material fact, use the Notes page.

It is important that the you disclose all material facts to the Insurer, failure to do so may mean that the policy will not operate in the event that a claim is made.

If you are unsure of whether something is a material fact or not, you should disclose it.

These questions form the basis of the declaration to the insurance company. It is important that these are read and changed if necessary.

A policy can be transacted in two ways, either by printing the an signing a proposal form, or by sending via EDI to CETA.

In the case of printing, the proposal should be signed and returned, together with the Direct Debit, to CETA. The proposal will be checked and then a policy will be issued.

In the case of an EDI transaction, once the electronic proposal is received by CETA it will be checked and the policy documents will be issued. The documents will include a Statement of Fact, which confirms the details that have been entered on the Quotation and Proposal screens.

Person or company who applies to take out insurance.

Covers legal liability for injury or damage caused to others.

Click on the Quote Button when you have entered all the client details and are ready to see a list of the various insurers quotes.

When you click this button the details are automatically saved so that you can retrieve them later if you wish.

When the quotation system cannot produce a quotation for a particular product, usually because the risk is outside the scope of the standard underwriting terms, then the insurer will ask for the risk to be referred to the underwriters.

The underwriters may then decide to accept or decline the risk. If accepted they will notify you of the premium and any special terms or conditions that might apply.

Enter your own reference, this will be tracked through the system and will be sent to CETA if this case is transacted electronically.

You could enter the Mortgage Reference number, for example.

Reinsurance is the cover insurance companies can purchase to protect themselves against large losses.

Shows the reason why an Insurer may have declined the risk or would like it referred before proceeding.

Notice sent to the policyholder inviting him/her to renew a policy for a further period and stating the premium payable.

Retail Price Index - an index taking into account the amount prices of retail goods are rising or falling.

Some insurers require the installation of approved alarm and/or minimum security fittings. Check whether this applies. You may qualify for a discount from the premium if you already have good security.

Doors Outside doors should have deadlocks which at least conform to BS3621. These locks can only be opened by key. A burglar cannot just use a plastic card to push back the tongue of the lock or break a glass panel and reach in to open it.

Doors which you usually lock from the inside - for example the back door - should also be fitted with bolts. Double doors should have bolts (preferably security bolts with removable keys) at the top and bottom of both doors as well as a lock.

On patio doors, additional security locks should be fitted to stop the slicing frame being lifted off the tracks. The sliding leaf of patio doors should be fitted on the inside.

Windows Most burglaries are through windows. Key operated locks should be fitted to all accessible windows - those on the ground floor and those near drainpipes and flat roofs. These locks are inexpensive to buy and easy to fit.

In all cases security devices must be in operation whenever members of the insured's household have gone to bed for the night or when no one is at home. The keys to doors and windows should be removed from the locks and be kept in a concealed location, but be ready for use in the event of an emergency,

(the definition may vary from insurer to insurer and the exact wording should be checked in the policy booklet)

Within particular sections of a policy (for example valuables, personal possessions, specified items) the insurer will limit the amount of cover they will provide for any single article.

If any item exceeds this limit then the policy will need to be referred to the insurer to see if they are prepared to accept the risk and if so on what terms.

The solvency margin is the excess of the reserves the insurance company holds over its liabilities.

These buttons allow you to re-sort the list into different orders say Company Name, Premium etc.

A brief description of the item being covered. Many insurers will ask for valuations of specified items over a certain value, usually around £1,500

If the item is removed from the home then check this box. This will ensure that the system quotes for insuring the property in and out of the home.

These are articles normally worn, used or carried about in every day life. We define them as clothing and personal effects, jewelry, watches, furs, photographic equipment, binoculars, cellular phones, musical instruments, sports equipment, luggage, toys, portable radios, televisions and pedal cycles.

The value of the individual item.

Some insurance companies prefer you to identify sports equipment separately from other Personal Possessions.

If the property is being sub-let to the occupier, or on loan.

Only certain insurers will accept Sub-Let properties and there will be additional limits and exclusions that will apply. Landlords contents only and no accidental damage options for example. DSS, Student and Holiday homes may have to be referred before you can obtain a quote.

The amount for which property is insured, and the maximum amount which the insurance company will pay for any claim.

The surname of the client, the proposer.

Someone involved in a claim who is neither the policyholder nor the insurer.

The title of the client, for example Mr, Miss, Ms, Dr

This shows the total of all Specified Items and Personal Possessions cover requested.

Select the type of claim from the drop down. If the type is not shown on the list then contact CETA.

This allows you to select the type of quote that you would like to produce. You can select Buildings, Contents or both.

When the sum insured is not enough to cover the maximum possible loss or damage.

Where the amount of cover is insufficient to pay a claim in full.

For example if the buildings were underinsured then in the event of a fire the insurance company may either refuse to pay the claim at all, or only pay part of the claim.

Under insurance is not fair on the rest of the population because effectively the insurer is grouping together all the premiums and setting that against the total claims, to work out the rate. If someone is underinsuring it means they are paying a smaller amount but could still make claims.

Consider the case where there are two homes with £30,000 of contents. One is insured for the full value and one for only £20,000 and is therefore underinsured. If they both make a claim for a £1,000 theft, the underinsured home could still be paid the £1000 claim, but their premiums would have been lower. This is clearly not fair on the others.

Person who decides whether to accept a risk and calculates the premium to be charged.

A risk where loss is either inevitable (e.g. a house already on fire or a person suffering from a terminal illness). Also applies where damage is gradual e.g. rust and corrosion.

Items of gold, silver and other precious metal, precious stones, jewelry, furs, pictures, curios, other works of art, telescopes, microscopes, collections of coins, stamps or medals, remaining within the home.

Enter the value of the claim.

This type of insurance provides cover against the cost of repairs to broken down household appliances.

A damaged vehicle which is not repairable, or one which would cost more to repair than the car was worth before the damage occurred. Also known as a "total loss".

The approximate year that the property was originally built. Most insurers give discounts for properties that have been built recently.