There are many different types of Car insurance policies and levels of
cover, here is a brief description of insurance definitions typically
used within the insurance industries.
Beneficiary
The person who is or will be the ultimate recipient of a benefit.
Benefit Basis
The benefit structure of a group insurance policy or pension
arrangement. It defines the type and level of benefits for each category
of membership. For example, life assurance cover for one category of
employees might be 3 x salary and for another category of employees it
might be 4 x salary (the categories must be clearly defined groups in
terms of jobs carried out so as to ensure there is no illegal
discrimination).
Benefits
The monetary amounts payable by the insurance company to a claimant,
assignee, or beneficiary under the terms of an insurance policy.
Broker
An agent who brings two parties together, enabling them to enter into a
contract to which he is not a principal. His remuneration consists of a
brokerage, which is usually calculated as a percentage of the sum
involved in the contract but may be fixed according to a tariff. Brokers
are used because they have specialized knowledge of certain markets or
to conceal the identity of a principal, in addition to introducing
buyers to sellers.
Buy Back
1) A payment made to reinstate into SERPS a person belonging to a
contracted out pension scheme. 2) Reinstatement of life assurance cover
after a claim has been paid on critical illness under a policy that
provides cover against critical illness and death. (Normally a policy of
this type will cease on the claim being paid; the life assurance cover
is then automatically cancelled.)
Buy Out
The purchase of an insurance policy for a pension scheme member in lieu
of benefits from the scheme following the termination of pensionable
service.
