Jargon explained - S

  • Definition
    An inspection of a premises/risk by a trained surveyor.

    Explanation
    Used by insurers to provide details of the risk.

    The surveyor inspects the premises that are to be insured (or are insured Subject to Survey) to check whether the risk is suitable for insurance and collect information that the insurer will use to work out the details of the insurance. The insurer may use this information to decide whether the risk is acceptable or any special conditions should apply to the insurance, and to make requirements or suggestions that may improve the risk.

    Quotations and any amendments to an insurance policy may be Subject to Survey.

  • Definition
    The maximum amount payable in the event of a claim under an insurance policy.

    Explanation
    Used when talking about insurance.

  • Definition
    In contracts of indemnity, the right of an insurer to stand in the place of the insured and exercise all rights and remedies available to the insured, whether already enforced or not.

    Explanation
    Used when talking about indemnity.

    Subrogation means that the insured passes their own rights in connection with an insured event over to the insurer. This means that the insurer can seek compensation from the party that was responsible for an insured event.

    The key aim of subrogation is to allow an insurer to recover claims from a third party if that third party is liable.

  • Definition
    A phrase used by an insurer to show that they have provisionally accepted an insurance risk pending inspection by a surveyor. The surveyor's report will be necessary to finally confirm the details of the risk to assess its acceptability and any limits, conditions and the premium to apply.

    Explanation
    Used when considering the basis upon which the insurance is provided.

    A policy may be Subject to Survey at quotation stage. If it is, the document communicating terms must clearly state that cover and the terms provided are Subject to Survey. Any contingencies relative to the survey must also be detailed, such as cover being subject to the Insured accepting and implementing any risk improvements required following the survey within timescales advised by AXA.

  • Definition
    Stock, including raw materials that have been bought by a business but not yet used in the process of manufacture or sold as finished goods.

    Explanation
    Used when considering Material Damage Cover for property.

    Used to provide a breakdown of the items insured and assessment of sums insured under a Material Damage Cover.

  • Definition
    A statement of the information provided by the proposer to the insured.

    Explanation
    Used when talking about insurance documents.

    The statement of fact provides a shared record of the information that the proposer has provided. They are often used now that it's common for proposers to provide information by phone or the web rather than completing an application form or proposal form.

    The insurance company issues a statement of fact to the customer as a record of the information that was provided and that they have used to work out the policy details and premium.

    It's very important that policyholders check the information on the statement of fact carefully and tell the insurer straightaway if anything is wrong or missing.

  • Definition
    A SME is a general description for businesses that are bigger than sole traders, but smaller than large businesses or organisations.

    Explanation
    Used when talking about types of business.

    At AXA PPP healthcare, we have a range of products designed to meet the needs of small to medium sized businesses.

  • Definition
    A policy condition that may apply to certain types of cover.

    In simple terms, the Six Week Rule specifies that claims will not be covered if the NHS can treat the medical condition that's being claimed for within six weeks from the date the treatment should be undertaken.

    Explanation
    Used when talking about medical insurance.

    The exact terms of the Six Week Rule will be given in the policy documents. If a policy includes the Six Week Rule, urgent or emergency treatment will not be covered by the policy because the NHS will deal with urgent or emergency treatment in less than six weeks.

    The Six Week Rule gives policyholders the peace of mind of knowing that, if they are not able to get treatment from the NHS within six weeks, from the date that the treatment should be undertaken, then they will be able to claim for it under their medical insurance providing it's eligible within their cover.

    One effect of the Six Week Rule is that premiums are reduced for policyholders as they will be expected to use the NHS where available.

  • Definition
    A shortfall occurs when the amount a member has claimed for is higher than the limit of cover.

    Explanation
    Used when talking about medical insurance claims. If the amount that has been claimed for is higher than the limit of cover, there will be a shortfall. If this is the case, AXA PPP healthcare will explain the situation to the member and the member will need to pay the remaining amount direct to the provider.

  • Definition
    The document that contains the specific information about the risk being insured. To make a complete valid insurance contract, the schedule must accompany the policy wording and any endorsements.

    Explanation
    Used when talking about insurance documents. Schedules give details of the policyholder, risk to be insured, liabilities, period of insurance and details of the premium and renewal date. Insurers must provide policyholders with a schedule at new business, for policy amendments and for policy renewals.