In our article we will talk about some great ideas to keep in mind for insurance contract. Here the details.
It is always best to refer to the Glossary of Terms and Conditions issued to you before the conclusion of the contract to identify and understand the essential terms of the contract or “insurance policy” that you have signed.
Here is a definition of the main terms that will be used throughout the worksheet.
Group insurance: Contract concluded between a legal entity (association, bank, company, etc.) and an insurer for the benefit of the beneficiary.
In the case of liability insurance, the insured is very generally understood as the person who has taken out the policy but also his close entourage.
Example: The head of household liability insurance cover in the multi-risk home insurance contract allows the person who has taken out the contract (either the father or the mother) to insure his civil liability that of his spouse as well as that of his children up to at 28 years old according to the contracts.
Insurance Contract Example
Insurer: Legal entity (civil or commercial company), party to the contract, which guarantees the risk, object of the contract.
Compensation: cash or in-kind benefit (assistance to the person) paid by the insurance company to the insured or the victim.
Intermediary in insurance: Any person who, for remuneration, carries on an insurance intermediation activity.
There are four intermediaries: general agents, brokers, insurance agents (non-salaried individuals and legal persons who are the agents of insurance organizations other than general agents), insurance agent intermediary (non-salaried individuals) and legal persons mandated by one or more insurance intermediaries belonging to one of the aforementioned categories).
Insured: party to the contract who runs the risk against which the insurance contract can be guaranteed.
In the insurance of persons, it is the natural person who can be alive at a certain date, be dead or be affected by an illness or an accident.
In property and casualty insurance, the insured person is the natural or legal person whose assets can be affected both in his assets (property insurance) and in his liabilities (liability insurance), when the risk is realized.
In technical language, the insured is referred to as policyholder.
Premium: Consideration that the insured agrees to pay to the insurer in exchange for its guarantee. It is, in a way, the remuneration of the insurer.
Risk: random event (the one whose occurrence does not depend on the will of the insured) against the consequences of which we are protected: theft, conflict, fire, death.
Insurance Contract Details and Explanation
Sinister: realization of the event that we feared and for which we made sure.
Subscriber: person (also called “lessee” or “contractor”) who has entered into the contract with the insurer. This person agrees by signing the contract and pays the premiums.
Generally, the insured and the subscriber are one and the same person, except in group insurance.
Example: In the case of borrower insurance (see the INC sheet on borrower insurance), the institution, issuing the bank or real estate credit, offers to cover the consumer in case of risk of non-payment following the realization of a given event (accident, illness, job loss …).
Third parties: persons who are neither subscriber, nor insured, nor insurer.