Accident
Accident means accidental bodily injuries sustained by the insured person, which are the direct cause of loss, independent of disease or bodily infirmity, and occurring while the insurance is in force.

Anniversary
The yearly renewal date of a contract, whether the contract actually expires or is continuous. The date is usually twelve months after the effective date of the contract, but may be at some other time if the contract were written for other than one year.

Binder
A record of insurance arrangements pending a formal contract being issued (which then replaces the binder).

Bordereaux
A list of premiums and claims paid or due, which is completed by the insured for a managing agent or broker. Bordereaux are commonly produced or updated every month or quarter. They breakdown block premium payments already made and detail claim payments made or due.

Cancellation clause
A clause in an insurance contract that permits the insurer and/or insured to cancel the contract before it’s due to end. The clause may provide for a return of premium in respect of the unused portion of the policy.

Cover note
A written statement issued by an intermediary, broker, or direct writer, showing insurance cover has started.

Death
Pays out the insured amount if an accident causes death.

Defense Base Act (DBA) insurance
Is mandatory for any civilian working directly or indirectly on a US government contract outside the US and Canada.

Deposit premium
When the terms of an insurance mean the final premium will be calculated at some time after the insurance has started, the insurer may require a deposit premium at the beginning. This is then readjusted when the actual premium is known.

Dismemberment
Pays out the insured amount if an accident causes the insured to permanently lose a limb.

Earned income
Earnings from your occupation or profession (gross income less business expenses, but before income taxes).

Endorsement
A document attached to a slip, cover note or policy that details one or more changes to the terms of the insurance or reinsurance contract.

Exclusions
Those risks, perils, or classes of insurance the insurer will not provide cover for.

Inception date
The date on which an insurance contract starts.

Insurance broker
An individual or company that acts as agent for a person, body or firm wanting to buy insurance and in presenting future claims.

Liability insurance
An insurance that covers against third party claims, or in the case of employer’s liability insurance, claims by employees - subject to specific terms and conditions.

Life assured
The person whose life is insured by a life insurance policy.

Life insurance
A policy that pays a specified sum to beneficiaries on the death of the life assured, or on the assured surviving a given number of years, depending on the terms of the policy. Life insurance policies may have fixed or indefinite terms.

Line
The proportion of an insurance risk an underwriter will accept.

Lloyd's of London
An organisation for underwriting insurance or reinsurance comprising a collection of individuals who assume policy liabilities.

Loss
This term generally refers to some injury, harm, damage or financial detriment that a person suffers. Losses may be insured or uninsured. Whether a loss is covered by a policy or certificate of insurance depends on the terms of that document and local law.

Loss adjuster
A person who is appointed to investigate the circumstances of a claim and to advise on the amount payable to the policyholder to settle that claim. Loss adjusters are generally appointed by underwriters, but sometimes policyholders appoint their own loss adjusters to negotiate claims on their behalf.

Material duties
The duties within an occupation that produce the majority of the income described on an insurance application.

Mental or nervous disorders
Any condition which includes any form of neurotic or psychotic behaviour or condition. Conditions may include: manic disorders, paranoia, and schizophrenia, dementia, personality disorders, depression, anxiety, or any form of chemical imbalance affecting the brain.

Permanent total disability
A sickness or injury the insured will not recover from and will never be able to resume their usual occupation.

Personal accident insurance
A type of insurance that pays a specific sum if the insured suffers some bodily injury or death as a result of an accident.

Policy
The wording of an insurance contract.

Policy limit
The Policy limit refers to the maximum amount of benefit payable, either overall or with reference to a particular section of the policy.

Policyholder
The party in whose name an insurance policy is issued – a person, a company or a group.

Premium
The amount charged by an insurer as the price for the insurance, before or after the subtraction of any fees or other deductions.

Physician, competent medical authority
An individual who is qualified to perform or prescribe surgical or manipulative treatments. A physician must be recognised (licensed and chartered) by the country they practice in and cannot be a relative of the insured.  They must practice within the scope of their license.

Pre-existing conditions
Physical, mental or chemical conditions have to be disclosed when applying for insurance.

Principal sum
The lump sum payable in the event of a claim.

Quotation (quote)
A statement of the premium the underwriter needs to underwrite an insurance risk based on the information supplied by the person wanting cover - either directly or through their broker.

Reinsurance
At a cost the reinsurer agrees to indemnify the reinsured company against all or part of the loss they may suffer if the policy is claimed on.

Risk 
A risk is an uncertain potential loss and takes account of how expected and actual losses can vary.  It is also used to describe the object of insurance protection: such as a building, an automobile, a human life, or the exposure to liability.

Slip policy
A slip policy is a signed slip that replaces a policy where the insured doesn’t need one.

Sickness
A sickness or disease of an insured person that first appears after the insurance starts.

Substantial duties
The duties that consume most of your work time as described on the insurance application.

Syndicate
An association of individuals or organisations that pursue certain insurance objectives. For example, individual underwriters in Lloyd's of London associate in separate syndicates to write marine insurance, reinsurance, life insurance and so on, entrusting the administrative details of each syndicate to a syndicate manager.

Temporary total disablement
Will pay out the insured amount if a disability temporary prevents the insured continuing their usual occupation.

Term
The time period during which an insurance contract stays in force. 

Term life insurance
A life insurance policy that pays the sum insured only if the life assured dies within the period of the policy, which is for a fixed period.

Third party
A third party is someone other than the insured or their insurer who has suffered injury or loss.

Third party liability
The liability that an insured has to a third party.

Terrorism
An act committed for political, religious, ideological or similar purpose with the intention to influence a government and puts the public in fear. Terrorism can include the actual use of force or violence, or the threat of it. Those committing terrorist acts can either be acting alone, or on behalf of an organisation or government.

Total disability
The insured cannot perform their usual occupational duties through sickness or injury.

Underwriter
The individual responsible for underwriting a particular insurance contract, and who is an employee of an insurance company.

Usual occupation
Usual Occupation means any occupation for which you possess the necessary training, skill or experience.

War
Declared or undeclared, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, martial law or confiscation by order of any government or public authority.