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Insurance glossary

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All A B C D E F G I L M N O P Q R S T U V

I

Terms: 18

Illness

Any impairment of health not caused by injury, with objective manifestations that make it possible to establish a diagnosis.

Insurable interest

The measure of financial interest in the insurance.

Insurance

INSURANCE is a way of reducing risk by guaranteeing compensation of potential losses to the injured party. Losses are compensated from an insurance fund, which is formed from the contributions of policyholders fearing losses and is managed by the insurer that guarantees their compensation. Insurance is one of the most important components of the service sector. Although insurance does not create new goods, spreading any policyholder's losses among all participants in the insurance fund makes their activities safer. Without insurance, many types of production activity involving uncertainty and risk would be impossible.

Insurance agent

An individual or legal entity included in the register of insurance agents that acts as an intermediary in concluding insurance contracts in the name and on behalf of one or more insurance companies under an agency agreement.

Insurance broker

A legal entity that represents the policyholder in matters relating to the conclusion and performance of insurance contracts with an insurer on the policyholder's instructions, or that, in its own name, acts as an intermediary in providing services connected with the conclusion of insurance or reinsurance contracts, and also provides consulting services on insurance and reinsurance matters.

Insurance contract

Under an insurance contract, one party (the policyholder) undertakes to pay the insurance premium, and the other party (the insurer) undertakes, on the occurrence of an insured event, to make an insurance payment to the policyholder or another person in whose favour the contract is concluded (the beneficiary), within the amount determined by the contract (the sum insured).

Insurance coverage (insurance provision)

In property insurance, the absolute (monetary) amount for which individual items, or all of the policyholder's property, are insured. The concept of insurance coverage is also used to assess an insurer's total liabilities across all the classes of insurance it writes.

Insurance currency

The currency in which the insurance is concluded. The premium is payable, and insurance indemnity amounts are paid, in the insurance currency. It must be stated in the insurance contract

Insurance limit

The sum insured stated in the insurance contract, up to which the insurer is liable to the policyholder (third parties)

Insurance market

A system of economic relations arising from the purchase and sale of a specific commodity, “insurance cover”, in the course of meeting society's need for insurance protection.

Insurance policy

A document issued by the insurer to the policyholder that constitutes the insurance contract. Insurance policy forms for compulsory classes of insurance must have at least three degrees of protection against forgery, of which microtext, an invisible element detectable under ultraviolet radiation, and a tangier (guilloche) grid are mandatory. The text of the policy form must be in two languages: the state language and Russian.

Insurance supervision

Control over the activities of insurance market participants, exercised by state bodies

Insurance tariff (premium rate)

The price of a unit of insurance cover. The methods of calculating insurance tariffs define the following components of the tariff: 1) net rate; 2) risk loading; 3) expense loading; 4) gross rate.

Insurance valuation

The process of determining the actual value of movable and immovable property accepted or to be accepted for insurance. The insurance valuation is the basis for calculating the sum insured and for determining the extent of the loss incurred and the amount of the insurance payment.

Insured event

An event upon the occurrence of which the insurance contract provides for an insurance payment to be made.

Insured person

The person in respect of whom the insurance is effected

Insurer

A legal entity that, under an insurance contract and in return for a fee (the insurance premium), undertakes to compensate the policyholder or another person in whose favor the insurance is taken out for losses resulting from the occurrence of insured events specified in the contract.

Insurer's limit of liability

The insurer's maximum liability arising from the terms of the insurance contract.

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