Insurance Terms

These are words or expressions generally used frequently in the conduct of an insurance business. A few of them are listed below:

1. Insurer: The insurer is the insurance company e.g. NICON insurance company, UNIC insurance company, etc.

2. Insured: The insured is the person or firm having the property covered against risk. 3. Premium: Premium is the amount paid by the insured to the insurance company to cover the risk.

4. Policy: The insurance policy is the written agreement between the insured and the insurance company.

5. Proposal form: This form is given to the person requesting insurance cover to fill out.

6. Cover note: This is used to give a temporary cover upon payment of the first premium pending when the policy is used.

7. Underwriting: Underwriting is concerned with risks involving a huge sum of money. The act of dealing chiefly in underwriting new scriptures, especially of marine policy. It is also a process by which an insurer offers to cover or underwrite a proportion or part of a risk.