Insurer-The party to an insurance arrangement who undertakes to indemnify for losses. Read more: http://www.investorwords.com/2523/insurer.

html#ixzz1Xpz0kMoj 1 ( noun ) insurance company, insurance firm, insurer, insurance underwriter, underwriter a financial institution that sells insurance 1 ( noun ) insurer one who, or that which, insures; the person or company that contracts to indemnify losses for a premium; an underwriter Noun1 . insurer - a financial institution that sells insuranceinsurance company, insurance firm, insurance underwriter, underwriternondepository financial institution - a financial institution that funds their investment activities from the sale of securities or insurance insurernoun insurance agent, insurance company The insurer is providing 320 million to cover mortgage losses .

insured

Definitions (2)
1. The person, group, or property for which an insurance policy is issued. 2. The condition of having insurance. Read more: http://www.investorwords.com/2519/insured.html#ixzz1Xq0BzIG0
1) the person or entity who will be compensated for loss by an insurer under the terms of a contract called an insurance policy. 2) the person whose life is insured by life insurance, after whose death the benefits go to others. (

Policy amt-Upon the insured's death, the insurer requires acceptable proof of death before it pays the claim. The normal minimum proof required is a death certificate and the insurer's claim form completed, signed (and typically notarized).[citation needed] If the insured's death is suspicious and the policy amount is large, the insurer may investigate the circumstances surrounding the death before deciding whether it has an obligation to pay the claim. Proceeds from the policy may be paid as a lump sum or as an annuity, which is paid over time in regular recurring payments for either a specified period or for a beneficiary's lifetime.[c The amount stated on an insurance policy, to be paid upon death or maturity.

face amount

Definitions (2)
1. Banking: (1) Amount written on a check the sum its payee is entitled to draw. (2) Principal sum advanced under a loan or mortgage agreement. 2. Insurance: Sum of money for which an insurance cover is obtained, usually shown on the top sheet (face) of the policy. In life insurance, face amount is the sum paid on the policy's maturity date, on the death of the insured, or (if the policy terms permit) on his or her total disability.

Premium In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured, or policyholder, is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. The periodic payment made on an insurance policy. also called premium. Read more: http://www.investorwords.com/2518/insurance_premium.html#ixzz1Xq2TBN72

insurance premium

Definition
Financial cost of obtaining an insurance cover, paid as a lump sum or in installments during the duration of the policy. A failure to pay premium when due automatically cancels the insurance policy which, upon payment of the outstanding amount within a certain period, may be restored.

Hints on Filling the Proposal Form An insurance contract is a simple contract. The elements of a simple contract include offer, acceptance & consideration. The offer for insurance is initiated by one party to the contract - the proposer, by submission of a completed proposal form. The second party to the contract - the insurance company, conveys its acceptance and the contract is completed. The insurance contracts being oral contracts, the policy document is not a contract but evidence of a contract. As such, the proposal form is a more essential document than the policy itself.

The proposal is the basis of the contract. The completed proposal and signed declaration by the proposer is referred to in the preamble of the policy document, thus connecting both the documents to form one enforceable contract. Proposal forms The proposal form generally elicits information like,

Personal details, information on the risk to be covered and insurance and claims history, The personal details of the proposer may include financiers, if any (a financier can also be included as additional insured), Details on the risk and insurance history will disclose previous insurance details- whether the proposer is entitled for any discounts in premium, or loading of the premium and whether any insurer has - refused to grant cover, cancelled the existing policy or demanded extra premium - all reveal physical hazards of the risk.

How to complete a proposal form ? Insurance contracts are contracts of good faith. The proposer has a legal obligation to furnish information in good faith. After completion of the contract or at the time of any claim, if the proposer is found to have concealed or misrepresented fraudulently or otherwise, such breach would render the contract voidable and no claim is recoverable. However, this duty to disclose would become Utmost good faith, with regard to 'material facts'. The 'material fact' is the information, which will influence the acceptance of a proposal by the Insurance Company, and the rate of premium at which to do so. Besides general information, specific information is required to be furnished in respect of different classes of Insurance and some insurance proposals are discussed hereunder: Fire Insurance

Information regarding construction of the building (walls, roof, etc.) and surrounding property and its contents - whether any goods not belonging to him, but held in trust with him. Proximity of the house to nearest river or watercourse and the distance from the nearest Fire Brigade facility.

Burglary

Information regarding location, adjoining premises (if a school, temple or vacant land etc., which are not occupied at night, which will enhance the risk, to be disclosed), whether there is watchman or guard and how doors & windows are secured, distance from nearest police station and history of previous thefts, if any, are to be disclosed.

Personal Accident

Age & occupation, existing disablements, previous accident history,earnings from gainful employment and other incomes.

Hospitalisation benefit policies

Age of the proposer, nationality, history of previous illnesses and existing health condition. Details of any incurable diseases or epilepsy. Assignment of policy monies, though not material, avoids litigation with legal heirs.

Motor

Correct description of the vehicle, ( cc. of the engine, model & make, and year of manufacture,) place where it is generally garaged, purpose for which it is used and whether the same is in a road worthy condition.

General Information

Generally non-life policies are issued for one year. However, long-term policies are also issued in respect of motorcycle policies, JPA policies, Gramin policies and Women's welfare policies. Marine policies are issued on an annual basis or voyage basis. Short-term policies (less than one year) can also be issued but the premium, charged would be on "short period scales" which are higher than proportionate. An existing policy can be cancelled at the option of both of the parties to the contract. In case of financial interest, the consent of the financiers is also necessary for cancellation of the policy. If cancellation of the policy is opted by the insured, premium will be charged on Short Period Scales and if the insurers resort to the cancellation, the refund would be proportionate, provided, no claim is preferred during the policy period. Neither party can cancel a Motor Vehicle Act policy, unless evidence of another policy having been taken is on record. This is a provision under Motor Vehicles Act. Section 64 V (B) of Insurance Act 1938, prohibits assumption of risk unless full premium is paid in advance. Similarly, parting of Agency Commission for the benefit of the insured is prohibited under Section 41 of the same Act, as it amounts to rebating of premium rates. Tariff Advisory Committee: Tariff Advisory Committee is a statutory body governing rules for issue of insurance policies in India and rates of premium to be charged. However, the rates indicated in the Tariff are minimum rates and an insurer is at liberty to charge anything more than the Tariff Rates, basing on his Underwriting considerations. All gross premiums are subject to 5% service tax, which is collected on behalf of the Central Government. Stamp Duty: Stamp duty payable on all insurance contracts is governed by stamp Act. Any infringement of Stamp Act will make the contract unenforceable. The remedy is to pay necessary penalty. Except in the case of Marine Insurance policies, the stamp duty is borne by the insurers. In case of Personal Accident policies issued for short periods (less than one year), stamp duty is payable by the insured.

What is surrender value?

ET Bureau Dec 9, 2009, 03.33am IST

Surrender value the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. What is surrender value? It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. A mid-term surrender would result in the policyholder getting a sum of what has been allocated towards savings and the earnings thereon. From this will be deducted a surrender charge, which varies from policy to policy. As per a recent Insurance and Regulatory Development Authority (IRDA) directive, life insurance companies have been asked not to levy surrender charges if the policyholder chooses to terminate the cover after five years.

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What Does Salvage Value Mean? The estimated value that an asset will realize upon its sale at the end of its useful life. The value is used in accounting to determine depreciation amounts and in the tax system to determine deductions. The value can be a best guess of the end value or can be determined by a regulatory body such as the IRS.

Investopedia explains Salvage Value The salvage value is used in conjunction with the purchase price and accounting method to determine the amount by which an asset depreciates each period. For example, with a straight-line basis, an asset that cost $5,000 and has a salvage value of $1,000 and a useful life of five years would be depreciated at $800 ($5,000-$1,000/5 years) each year. Within the tax system, when a person donates a car he or she receives a tax deduction. The value of this deduction depends on the salvage value of the car. This salvage value is determined to be the current fair market value that could be obtained had the car been sold on that day rather

Read more: http://www.investopedia.com/terms/s/salvagevalue.asp#ixzz1Xq47jltU

salvage value
The amount for which an asset can be sold at the end of its useful life. In insurance circles, this term commonly refers to the scrap value of damaged property. In property insurance, salvage value (e.g., scrap value) will be subtracted from any loss settlement if the insured retains the damaged property. In extra expense coverage, the salvage value of property purchased for temporary use while repairs are made will be deducted in determining the amount of loss recovery.

What is the Average Clause in an Insurance Policy?

Improve In: Insurance [Edit categories] For Life Insurance Policy jumpstart.co.in Savings, Investments & Insurance at Jumpstart Insurance Consultants. Bajaj Life Insurance www.bajajallianz.com/life-insurance 100% premium paid invested from 6th year, 98% for the first 5 years Ads Answers.com > Wiki Answers > Categories > Business & Finance > Insurance > What is the Average Clause in an Insurance Policy? Answer: Improve Imagine you suffer a fire which causes 180,000 worth of damage to the building, but only have insurance reinstatement cover of 300,000. You might think - "no problem, I have almost twice that amount of cover", but you forget the average clause. The effect of the average clause is that the Insurance Company says "the true reinstatement value is 600,000, but you are only covered for 300,000 - half the real amount, therefore, we will only pay half of any valid claim you make". The Insurance Company therefore pays out 90,000 - leaving you 90,000 short.

Read more: http://wiki.answers.com/Q/What_is_the_Average_Clause_in_an_Insurance_Policy#ixzz1Xq5n8fdm

Under Insurance - The Average Clause and How it Works

Some policies contain what is known as an Average or Co-Insurance clause. The unusual impact of these types of clauses is that if you underinsure i.e. Not insure to the full value or the amount of insurance limit purchased is inadequate, your claim may be reduced in proportion to the amount of the under-insurance.

average clause
noun

Definition of AVERAGE CLAUSE

1 : a clause in an insurance policy that restricts the amount payable to a sum not to exceed the value of the property destroyed and that bears the same proportion to the loss as the face of the policy does to the value of the property insured compare coinsurance 2 : a clause in a marine insurance policy that exempts the insurer from particular average and in respect of some things from all average