Glossary of Insurance Terms
Printed with permission from the Insurance Institute of Canada.
Please choose a letter to continue:
Salvage
Schedule
Scheduled Property Floater
Seasonal Risk
Self-insurer
Settlement
Settlement Options
Short Rate Cancellation
Slander
Smoke Damage
Special Damages
Special Multi-Peril Policy
Spontaneous Combustion
Sprinklered Risk
Statement of Claim
Statement of Values
Statute
Statute of Limitations
Statutory Conditions
Stock
Stock Company
Storage
Structured Settlement
Subcontractor
Subrogation
Subscription Policy
Suit
Sum Insured
Superintendent of Insurance
Surrender
Salvage
The remaining value of property after severe damage by
fire or other peril. The overall loss is reduced by the
salvage value. Undamaged property may be quite saleable
and some property may be partially damaged, thus
repairable and then saleable.
Schedule
1) A comprehensive list accompanying a policy to detail
the property, locations and amounts insured, and the
applicable conditions.
2) In rate-making, the formula applied to determine a
rate.
Scheduled
Property Floater
An inland marine form of policy specifically insuring
various individual items. Articles of unusual value,
provided they are movable, may normally be written this
way and insured against many hazards, often against
"all risks."
Seasonal Risk
1) A risk occupied only part of the year, such as a
summer dwelling.
2) In manufacturing, it may be a plant operating
seasonally, such as a cannery.
Self-insurer
A person, corporation or organization which assumes all
or part of a risk itself rather than use an insurer,
government departments often self-insure.
Settlement
An agreement between concerned parties. In insurance, the
agreement is usually on the money changing hands to
discharge an insurance claim.
Settlement Options
The alternatives offered to the insured or the insured's
beneficiaries when settling a loss. Life insurance
policies provide either a lump sum payment or a set
annual amount for a fixed period. Accident and health
policies usually provide for weekly benefits along with
the payment of expenses as they occur, even though the
disability may not last long enough to total the lump sum
option.
Short Rate
Cancellation
The cancellation by the insured of a policy before its
natural expiration; the insurer pays a return premium
which is less than the proportionate part that remains
unearned.
Slander
The oral utterance or spreading of falsehood harmful to
another's reputation. Libel is written; slander is
spoken.
Smoke Damage
Essentially, the devaluation by smoke, not fire, of
merchandise and property. Such damage is covered by the
fire policy.
Special Damages
Actual loss from the natural, not the necessary,
consequences of the subject of complaint; e.g., specific
payments for medical bills or car repairs. In third party
claims, it means the damages that may be proved with
documents.
Special
Multi-Peril Policy
This basic policy contains declarations, general
provisions and definitions applicable to the four
principal sections of coverage; property, liability,
comprehensive crime, boiler and machinery. The particular
coverage requirements for each are handled by separate
forms attached to the basic contract.
Spontaneous
Combustion
Self-ignition of combustible material through chemical
action of its parts.
Sprinklered Risk
Property protected against fire by a system of overhead
pipes with regularly spaced heads designed to melt at the
heat of a fire, thus releasing water for extinguishment.
Statement of Claim
A written statement by a plaintiff detailing the facts
which support the claim against the defendant and the
relief sought.
Statement
of Values
The information required when a single rate is to cover
more than one item or building. To determine a correct
average, the rating bureau requires the policyholder to
give the value of each separate risk and its contents.
Statute
An act of the legislature. Common law is made up of the
various court decisions over the years. Case law may be
altered by statute.
Statute of
Limitations
Law determining the period within which a specific legal
action must be taken.
Statutory
Conditions
Special prescribed and standardized conditions that the
Provincial Insurance Acts require to be included in fire,
automobile and accident and sickness policies.
Stock
Merchandise for sale or manufacture, as distinguished
from furnishings, fixtures or equipment.
Stock Company
A company owned by a series of investors or stockholders
(shareholders) who assume the risks of profit or loss.
Storage
A term applied to articles or substances held for
safekeeping. If storing of such articles is prohibited by
a policy, the policy will be voided if loss consequently
occurs, unless the company's permission and consent has
been specially granted.
Structured
Settlement
A financial package permitting a settlement to be paid in
regular installments either for a fixed period or for the
lifetime of the claimant. Because it is tailor-made for
individual cases, the structure may also include some
immediate payment to cover special damages. The payment
is usually made through purchase of an annuity from a
Life Insurance Company.
Subcontractor
A trade contractor such as a roofer who usually
subcontracts with a general contractor.
Subrogation
Once a company has paid a loss for which someone other
than the policyholder is responsible, it may have the right to recover this loss from the guilty party. This
right is called subrogation.
Subscription
Policy
A single policy covering a risk that is divided among a
number of insurers; the policy is issued by the
"lead" company (usually the one with the
largest percentage) and signed by all participating
companies.
Suit
A legal proceeding brought by one person against another.
Sum Insured
The amount for which insurance is effected and the one on
which the premium is based. Often in life insurance, the
term is "sum assured."
Superintendent
Of Insurance
The chief officer of the Government Department which
regulates insurance.
Surrender
Cancellation of a policy before its normal expiry by
mutual consent of insured and insurer.
