Lapse
The expiry and non-renewal of a policy
Limit
The insurers maximum liability as agreed in the contract, this may be expressed as per event, per annum or per occurrence
Loss
Often defined as either the loss of an item or damage to the item which is the subject of the insurance coverage
Loss Adjuster
Loss Adjusters are appointed by insurers to carry out detailed investigations of claims on behalf of the insurer. The Loss Adjuster is intended to be an independent expert tasked to negotiate a settlement which is agreeable to all parties in a claim, though they are paid by the insurer
Loss Assessor
Acts on behalf of the claimant (if appointed by them) in return for a fee or percentage of the amount of the claim paid by the insurer
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Material Damage Provison
Within business interruption insurance there is a requirement for there to be loss or damage to property by an insured peril under a material damage policy and the insurer of said property must have admitted liability under their policy for such for there to be a claim under the business interruption cover. There are some specific extensions that do not require such
Material Fact
Any information which would influence the insurer’s acceptance of a risk and the terms that they would apply including level of premium
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Negligence
Failure to take proper care over something (failure to do that which a prudent and reasonable man would do)
Net Premiums
Gross premiums net of commission, brokerage fees, taxes, reinsurance fees or any combination of these
New for Old
Insurers agreement to pay the cost of replacement without deduction for depreciation, wear and tear
No Claims Bonus
A premium rebate or discount given by the insurer to the insured if no claim has been made during a previous period or periods
Non-Disclosure
The failure by the insured to disclose a material fact before acceptance of the risk by the insurer or a change to a material fact during the period of insurance
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Occurrence
An event or specific happening as defined within a policy
Occurrence Basis
Coverage is provided for a period and a cause of a claim must have occurred during the Policy period. See also claims made basis