Glossary of Insurance Terms

The person or legal entity named in the policy schedule (or the Assignee(s) named on the memorandum of transfer if the Policy has been assigned) that owns this insurance policy and who has all contractual rights with regards to this policy. The policy owner is not necessarily the same person as the life assured or the premium payer.

Policy means the terms and conditions applying to this insurance, as described in the Policy Wording and the Policy Schedule.

The date on which the premium is payable.

Premium payer is the person or legal entity that is responsible for paying premiums for this policy. The premium payer is not necessarily the same person as the policy owner or the life assured.

Payments due to the insurance company from the policy owner in return for an undertaking by the insurer to provide policy benefits.

The person responsible for the daily management of an insurer, agency or broker as required by the Non-Bank Financial Institutions Regulatory Authority.

The manufacture, acquisition, possession, development, export, transshipment, brokering, transport, transfer, stockpiling or use of any arms of war or NBC weapons.

An investment policy that has no life cover.

An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant.

A life assurance policy in which premiums are made at regular intervals; e.g monthly or yearly.

When a lapsed policy is put back in force and benefits are reinstated.

An agreement whereby an insurance company transfers part or all of its risk of loss under insurance policies it writes by means of a separate contract or treaty with another insurance company or re-inssurer.

To refuse to admit liability to a claim.

A policy designed specifically to provide a person with money to finance an income in retirement. The contributions made, are tax deductible, although the income itself is taxable.

Usually known as an endorsement, a rider is an amendment to the policy used to add or delete coverage.