The vocabulary of business insurance, clearly explained
Terminology of the insurance contract and the insurance programme of a company. Each entry includes the definition of the term, the rule that regulates it when it exists and the effect it has on a policy. It also includes the specific vocabulary of international programmes: master policy, admitted local policies, DIC and DIL clauses and premium taxation.
159 términos · página 1 de 7
- Accident
Event of violent, sudden, external cause beyond the insured's will that causes bodily or material damage.
Art. 100 of Law 50/1980, Insurance ContractIn practice- Collective agreement accidents
Accident insurance that many collective agreements require to be contracted for the entire workforce, with sums insured set in the agreement itself.
In practice- Direct action of the injured party
Right of the person who has suffered damage to claim compensation directly from the insurer of the responsible party, without going through them.
Art. 76 of Law 50/1980, Insurance ContractIn practice- Actuary
Professional who applies statistical and financial methods to the calculation of premiums, provisions and solvency of an insurer.
In practice- Insurance agent
Mediator who distributes insurance on behalf of one or several insurers, with whom they maintain an agency contract.
Real Decreto-ley 3/2020, de distribución de segurosIn practice- Aggravation of risk
Change in declared circumstances that increases the probability or intensity of the claim. The policyholder must communicate it as soon as possible.
Arts. 11 to 13 of Law 50/1980, Insurance ContractIn practice- Mitigation of damage
Obligation of the insured to take measures to reduce the consequences of the claim.
Art. 17 of Law 50/1980, Insurance Contract ActIn practice- Objective analysis
Obligation of the broker to advise based on a sufficient number of market contracts and with professional, not commercial, criteria.
Real Decreto-ley 3/2020, de distribución de segurosIn practice- Insured
Holder of the interest exposed to the risk. May or may not coincide with the policyholder, who is the one who signs the contract and pays the premium.
Art. 7 of Law 50/1980, Insurance ContractIn practice- First demand guaranteeFirst demand bond
Guarantee that obliges the insurer to pay upon the simple request of the beneficiary, without discussing the underlying relationship.
In practice- Machinery breakdown
Cover that protects against sudden internal damage to equipment due to mechanical, electrical, or operational causes, without an external claim.
In practice- General averageGeneral average
Proportional distribution between ship and shippers of the sacrifice or extraordinary expense made to save the maritime expedition.
In practice- Compensation scale
Legal system for assessing personal injuries, mandatory in traffic accidents and used as a reference in the rest.
Law 35/2015, reform of the damage assessment systemIn practice- Claims made basisClaims basis
System by which the policy covers claims made during its validity, regardless of when the event occurred, within the agreed retroactivity.
Art. 73, second paragraph, of Law 50/1980, Insurance Contract ActIn practice- Beneficiary
Person designated to receive the benefit. In life insurance, their designation can be modified at any time unless expressly waived by the policyholder.
Arts. 84 to 89 of Law 50/1980, Insurance ContractIn practice- Bonus-malus
System that adjusts the renewal premium based on the claims recorded in previous years.
In practice- Good faithUberrimae fidei
Principle that obliges both parties to inform each other with loyalty: the policyholder about the real risk and the insurer about the scope of what is offered.
In practice- Market capacity
Volume of risk that the group of insurers and reinsurers is willing to assume in a branch and at a given time.
In practice- Waiting period
Initial period during which certain guarantees are not yet enforceable.
In practice- Cash before cover
Rule in force in several countries whereby cover does not commence until the premium has been effectively paid.
In practice- CaptiveCaptive company · Captive
Insurer or reinsurer owned by the business group itself, created to orderly retain part of its risk.
In practice- Cyber extortion
Cover that responds to negotiation, advice, and, when the law permits, the payment demanded to recover hijacked systems or data.
In practice- Credit classificationCredit limit
Maximum amount that the credit insurer agrees to cover for a specific client, reviewable at any time.
In practice- Leasing clauseFinancial entity clause
Designation of the financial lessor or mortgage creditor as the preferred beneficiary of the compensation on the financed asset.
Art. 40 of Law 50/1980, Insurance ContractIn practice
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