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Insurance Glossary
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There are 11 names in this directory beginning with the letter S.
Property taken over by an insurer to lower its loss.

Occurs when an individual or a company which has a large number of risk units, recognises that a risk exists and makes a conscious decision to bear that risk without insurance.

Short tail business
A term describing business where most claims arise and are settled relatively quickly. It is sometimes applied to those classes of business that take no more than three years to run off.

Slip Endorsement
A document noting an amendment to a slip.

Solvency test or margin (General insurance)
An insurer's assets must exceed its liabilities by a certain amount. The formula for the calculation of that amount is set down in the Insurance Act.

Statement of Advice (SOA)
If a broker provides personal advice, they must provide a written statement of advice (SOA). Personal advice is financial advice that takes into account personal objectives, financial situation or needs. The information in an SOA is required to be presented clearly and concisely, with enough detail for the Insured to make an informed decision about whether to act on the advice

Statute of Limitations
A law that specifies a time limit for which a person can bring a legal action for a claim.

Stop loss reinsurance
A reinsurance to protect the reinsured from losses in excess of a given percentage of its net premium income.

Means violent wind (including a cyclone or tornado), thunderstorm or a heavy fall of rain, snow or hail

Strata Title
A system of title that allows the owner of a unit, in a block of units, to have a separate title for that unit.

Subject matter
The object which forms the basis of the contract of insurance. For example, in the case of House and Contents Insurance, the subject-matter of the policy is the insured's house and contents.
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