Glossary
Accident
a sudden short-term occurrence (incident) happened against person’s will as a result of external mechanical, electrical, chemical or thermic impact on Assured’s organism entailing damage to health, including injury or death.
Act of God
extraordinary occurrence, which was impossible to foresee and prevent. In insurance practice such occurrences are called force majeure circumstances and can be included into insurance agreement.
Agency agreement
contract of agency concluded between parties in a written form, according to which one party (insurance agent) is obliged for a fee on behalf of and by order of the other party (insurance organization) to provide intermediary services on insurance agreements conclusion within the powers provided by the legislation.
Agency commission
fee for the agent’s service paid by Insurer to insurance agent for provision of intermediary services on insurance agreements conclusion.
All risks
insurance conditions, when Insurer covers all risks envisaged by the rules of insurance. However, these must not be interpreted that this type of insurance covers each and every loss, it is covering risks only.
Application of insured
a written document of intention to purchase insurance policy or information about insurance event occurrence. Before the insurance agreement conclusion, Insured is obliged to indicate in application all facts of material character and circumstances, which are known or must be known to him in accordance with his activity and which can influence on Insurer’s decision about accepting for insurance or risk refusal, determination of adequate premium rate and etc. If Insured does not provide this information, Insurer has a right to repudiate the insurance policy concluded by them. If Insurer does not demand this, Insured should not inform the facts, of which it may be suggested that they are known to Insurer by virtue of their common knowledge or which must be known to Insurer in accordance with his activity.
Arbitrage
state or international authority established for settlement of property disputes between enterprises, organizations, institutions, as well as plaints connected with non-fulfillment of agreements.
Assured
a person in whose favour the insurance is provided. Insured is simultaneously Assured, except as otherwise is provided by agreement.
