Odisha CHSE +2 Vocational Insurance flashcards
Odisha CHSE +2 Vocational Insurance · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Insurable Interest
- A financial relationship in which the insured benefits from the preservation of the subject matter or suffers loss from its destruction; required at inception for life and at loss for property.
- Utmost Good Faith
- The legal duty on both parties to disclose all material facts relevant to the risk; breach by the proposer makes the contract voidable at the insurer's option.
- Subrogation
- After paying an indemnity claim, the insurer acquires the insured's legal right to recover the loss from the negligent third party responsible.
- Proximate Cause
- The dominant and effective cause of a loss, without which the loss would not have occurred; remote causes are disregarded in determining cover.
- Law of Large Numbers
- Statistical principle that as the number of independent similar exposure units grows, actual loss experience converges toward the expected loss, stabilising premium rates.
- Moral Hazard
- A condition of dishonesty or carelessness in the insured that increases the likelihood or size of a loss, such as deliberate damage to claim insurance.
- Pure Risk
- A risk involving only the possibility of loss or no loss, with no chance of gain; it is the type of risk insurance is designed to transfer.
- Reinsurance
- The transfer of part of an insurer's risk portfolio to another insurer, protecting the ceding insurer against large or catastrophic losses.
- Term Assurance
- A life policy paying the sum assured only if the life assured dies within the policy term; it has no maturity value and the lowest premium.
- Endowment Policy
- A life policy paying the sum assured on death within the term or on survival to maturity, whichever occurs first, combining protection with savings.
- Annuity
- A contract in which the insurer pays periodic income in exchange for a lump sum, often for the annuitant's lifetime, managing longevity risk.
- ULIP
- A unit-linked insurance plan in which part of the premium buys life cover and the balance buys units whose value fluctuates with market performance.
- No-Claim Bonus
- A discount on renewal premium granted in motor and some other policies when the insured makes no claim during the preceding policy year.
- Average Clause
- A condition reducing a property claim in proportion to underinsurance, calculated as sum insured divided by actual value times the loss.
- Third-Party Liability
- The compulsory motor cover for bodily injury, death, or property damage caused to others, payable without proof of the insured's fault in statutory cover.
- Deductible
- The amount of each loss the insured must bear before the insurer pays; it eliminates small claims and reduces the premium.
- Endorsement
- A written amendment attached to a policy that alters its terms, such as changing the sum insured, adding a peril, or correcting details.
- Cover Note
- A temporary document issued as evidence that insurance is in force before the formal policy is prepared and delivered.
- Underwriting
- The process of assessing and classifying risks, then deciding whether to accept, at what premium, and on what terms or exclusions.
- Surveyor
- A licensed professional appointed by the insurer to inspect and assess the cause and quantum of a general insurance loss.
- Repudiation
- The insurer's formal written refusal to pay a claim, stating the policy reason, such as exclusion, non-disclosure, or breach of condition.
- Insurance Ombudsman
- A statutory grievance-redressal authority that hears eligible policyholder complaints free of charge and can award compensation within prescribed limits.
- Free-Look Period
- The period after receipt of the policy during which the policyholder may return it and receive a refund of premium, subject to conditions.
- Solvency Margin
- The excess of an insurer's assets over liabilities, maintained at the prescribed ratio to ensure ability to meet policyholder obligations.
- Insurance Broker
- A licensed intermediary who acts for the client rather than the insurer, advising on cover and placing the risk with suitable insurers.
- Bancassurance
- Distribution of insurance products through bank branches, usually under a corporate agency or referral arrangement with the insurer.
- Corporate Agent
- A firm, bank, or institution licensed to solicit and service insurance business on behalf of one or more insurers as permitted.
- Mis-selling
- Selling an unsuitable product or concealing key terms, exclusions, and risks, breaching the duty of fair dealing owed to the customer.
- Double Entry
- An accounting system in which every transaction is recorded in at least two accounts, with total debits equalling total credits.
- Unearned Premium
- The portion of premium relating to the unexpired part of the policy period, held as a liability until it is earned over time.
- Agent Commission
- Remuneration paid to an insurance agent by the insurer, usually a percentage of premium, within the rates permitted by regulation.
- Grievance Redressal
- The structured process for receiving, acknowledging, investigating, and resolving customer complaints, escalating to the Ombudsman if unresolved.