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.
Waiver
An agreement attached to the policy and accepted by the insured, to
eliminate a specified pre-existing physical condition or specified
hazard.
Waiver Of Premium
A provision that sets certain conditions under which an insurance policy
will be kept in full force by the company without the payment of
premiums.
Whole of Life Insurance
A life insurance policy providing payment on death, whenever this
occurs. Premiums may be payable throughout life, or for a shorter
period.
Will
A legal document specifying how an individual's property is to be dealt
with on his or her death and appointing Executors to carry out these
instructions.
With Profits (Of life insurance policies)
Entitled to a share of the insurance company's profit. Each year a bonus
is added to the guaranteed sum insured to reflect the company's profit.
Usual practice is to 'smooth' such bonuses so that a comparatively
unsuccessful year will not necessarily lead to a lower bonus but a
succession of poor years will be reflected by a gradual reduction of
bonus rate (and conversely for a series of successful years).
Without Profits (Of life insurance policies)
Not entitled to any bonus. The sum payable will only ever be the amount
guaranteed in the policy however profitable the insurance company may
be.
With profits endowment
A fixed term investment with life cover. The guaranteed sum insured is
increased by bonuses, representing a share of the profits of the life
fund.
Written Premiums
The total premiums on all policies written by an insurer during a
specified period of time.
