Jargon explained - I

  • Definition
    A professional insurance qualification awarded by the Chartered Insurance Institute.

    An Associate of the Chartered Insurance Institute has successfully completed the Advanced Diploma in Insurance, previously known as the Associateship.

    Explanation
    Used when talking about professional qualifications in the insurance industry.

    Associate of the Chartered Insurance Institute is a widely recognised qualification in the UK insurance industry.

    The Advanced Diploma in Insurance is the second highest of four available levels of qualifications offered by the Institute. It was previously called the Associateship

  • Definition
    The date an insurance policy starts to provide insurance.

    Explanation
    Used when talking about insurance policy terms.

    The inception date is sometimes also called the cover start date.

  • Definition
    Insurance cover for the additional costs an insured may face to keep working following an insured event.

    Explanation
    Used when considering Business Interruption insurance cover.

    Increase in Cost of Working cover is either available as a separate cover or commonly included as one of the covers in Business Interruption insurance.

  • Definition
    The number of claims arising in a period irrespective of whether they have been paid or are outstanding.

    Explanation
    Used when talking about insurance claims.

  • Definition
    Where the sum insured is automatically adjusted in line with the general rises in cost.

    Explanation
    Used when talking about insurance policies.

    A policyholder might choose an index linked sum insured to make sure that they have some protection built into the policy to protect against the effects of inflation.

  • Definition
    Defined by the Association of British Insurers (ABI) as a patient who is admitted to hospital and who occupies a bed overnight or longer, for medical reasons.

    Explanation
    Used when talking about patients and medical treatment.

    Also see day-patient and out-patient.

  • Definition
    A foundation level professional insurance qualification awarded by the Chartered Insurance Institute (CII). The Foundation Insurance Test covers six foundation level topics in insurance and is the first step in the professional qualifications offered by the CII.

    Explanation
    Used when talking about professional qualifications in the insurance industry.

    A certificate issued by the Chartered Insurance Institute (CII) to indicate that the holder has passed examinations based on the principles and practice of insurance. It is a stepping stone to the Certificate of Insurance Practice and was previously called the Certificate of Proficiency. 

  • Definition
    A tax payable on general insurance premiums.

    Explanation
    Used when talking about tax on insurance.

    Insurance premium tax is levied on general insurance premiums by the Government.

    Insurers are liable to pay the tax and they can then decide whether to charge the tax on to their customers through their premiums.

    All documents showing premiums, such as quotations, must show the amount of insurance premium tax that's being charged to the customer.

    Not all UK residents pay this tax for example people who reside in the Channel Islands or Isle of Man. 

  • Definition
    The person whose risks are insured or in whose favour an insurance policy is issued.

    Explanation
    Used when talking about insurance.

  • Definition
    An insurance company or Lloyd's underwriter which, in return for a premium, agrees to make good, in a manner laid down in the policy, any loss or damage suffered by the policyholder as a result of an accident or peril covered by the policy.

    Explanation
    Used when talking about insurance.

  • Definition
    Payments that an employee can claim from their employer while the employee is waiting to go to a tribunal or court for unfair dismissal. The employee may be able to claim for interim relief if they can prove that they will suffer undue hardship without it.

    Explanation
    Used when talking about Legal Expenses insurance.

    Interim relief is payment from the employer to the employee that effectively replaces the employee's salary while they are waiting for their unfair dismissal case to be decided.

    The employee will usually have to satisfy the court or tribunal that they will suffer undue hardship without the relief, and that they have a reasonable chance of winning their case.

  • Definition
    A person or organisation who arranges insurance policies for the end customer with insurance companies. This service may include offering advice.

    Explanation
    Used when talking about how insurance is bought and sold.