The termination of a policy before the expiry date.

An insurance company that is wholly owned by one or more entities, the main purpose of which is to insure the risks of its parent companies. Several large Australian companies and organisations have their own captive insurers.

Let the buyer beware. Insurance contracts are NOT Caveat emptor (buyer beware) contracts. They are Uberrima Fidei Utmost Good Faith) contracts.

An insurer who transfers all or part of a risk to a reinsurer.

The original insurer. It is the company which deals with the client, and reinsures part or all of the risk.

A certificate that acts as proof that a policy has been issued.

The portion of the sum insured of a risk ceded to a reinsurer. A Cession is a particular reinsurance transaction.

Notification by or on behalf of a claimant that an event likely to be covered by a policy has occurred, or is likely to occur, and giving formal notice to the insurer accordingly. Usually a claim will be accompanied by a request for indemnification under the policy.

The party asserting a right of recovery under a contract of insurance.

The ratio of the cost of claims to earned premiums.

The document sent by a broker to an insurer confirming and finalising an insurance cover arranged by the broker.

An insured who has a sum insured which does not represent the full value of the insured property may be their own co-insurer and, therefore, sharing in the risk with the insurer. This can result in a reduced claim.

The Insurance Council of Australia, as a response to the needs of the insurance industry and with the assistance of the Insurance Enquiries and Complaints Ltd. (IEC), developed the General Insurance Code of Practice ("the Code"). The Code is a self-regulatory form of regulation, that is, the insurance industry, not the government, is responsible for making it work. The overall aim of the Code is to raise service standards across the general insurance industry. It applies across the insurance industry to insurance companies, their employees, agents, investigators, assessors, loss adjusters and collection agents.

A group of items of sufficiently common type, appearance or nature that they reasonably belong together and that is devalued if one or more of the group is lost or damaged.

A fee charged by a broker or agent for services in the sale of an insurance contract.

The principles of law arising from court decisions.

(Usually associated with motor vehicle insurance)Provides specified cover for damage to insured car as well as damage the insured car may cause to the property of others.

A simple contract requires consideration to be given by the parties to the contract. The consideration must be worth something. It may be in the form of money, goods or services.

An agreement between two or more parties which is enforceable by law.

Where an insured has two or more insurance policies which are covering the same interest against the same peril, the insured can make his/her claim in full against one or other of the insurers. The chosen insurer can then require the other insurers to make a proportional contribution towards that loss. (Given that the insurance policies are subject to the rule of indemnity, the insured is prevented from recovering from all the insurers and therefore making a profit from his/her claims).

A period of not less than 14 days which must be provided to Retail Clients on Retail products. During this period a client may return the policy and receive a full refund of premium unless a claim has been made.

Means the protection provided by the policy.

A contract of insurance intended by the insurer to provide temporary insurance cover and which is to be replaced by another contract of insurance. Cover notes are usually issued where further particulars are to be ascertained or where the insured has been requested to comply with additional risk acceptance conditions before a more permanent insurance contract is entered into.Also called an Interim Contract of Insurance under Section 38 of the Insurance Contracts Act.

The scope of the protection provided under a contract of insurance.

Compulsory Third Party insurance (CTP Green slip in NSW) is the insurance that is needed when registering a vehicle. CTP insurance is intended for the situation where another person is injured or killed in an accident, which is caused by the driver of the insured vehicle. Loss or injury suffered by a person, normally calculated in monetary terms.