Ch 1 Sec 2

Front 1

Fiduciary

Back 1

One who occupies a special position of trust or confidence in the handling or supervising of the affairs or funds of another

Front 2

Unearned premium

Back 2

Premiums not yet earned by the insurer such premiums are deemed to be held in trust in order to refund the insurance in the event of the policy is canceled prior to the expiry date

Front 3

Fire

Back 3

Involves the presence of a visible flame or glow actual ignition or burning is required

Front 4

Friendly fire

Back 4

A fire that is contained in its proper receptacle

Front 5

Hostile fire

Back 5

A fire that passes outside of the limits assigned to it

Front 6

Proximate result

Back 6

Damage which arises from a natural or continuous sequence of the peril causing the loss

Front 7

Material change

Back 7

Is any change within the control and knowledge of the insured and which rises after the policy has been issued and serves to increase the chance of loss

Front 8

Pro rata

Back 8

Basis of return premium calculation when the insurer cancel the policy the amount of the return premium is arrived at by dividing the amount of premium paid by the number of days in the policy period. The number is so obtained is then multiplied by the number of days remaining in the policy period.

Front 9

Short rate

Back 9

The basis of return premium calculation when the insured's cancel the policy. The amount of the return premium is equivalent to that provided on a pro rata basis less any administrative charge or cancellation penalty.

Front 10

Notice of loss

Back 10

Immediate report of loss to ensure by the insured or his representative/agent in writing.

Front 11

Proof of loss

Back 11

A formal verification, under oath, of the details of the mounds of being claimed under the policy.

Front 12

Fraud

Back 12

Is a deliberate attempt to deceive, with a view to securing some profit.

Front 13

Deductible

Back 13

Represents the amount the insured is required to absorb for each loss for which insurance coverage is provided before receiving any payments from the insurer.

Front 14

Subrogation

Back 14

Winning sure has paid a claim for loss caused by a third party, the interns Act allowed mean sure to place itself "in the insured's shoes" in respect of their right to recover the amount of the loss from the responsible party.