Basic terms and concepts used in the field of insurance
PLAN:
1. Terms related to the establishment of the insurance fund.
2. Terms and concepts related to the use of the insurance fund.
3. Terms and concepts used in international insurance practice.
1. The following can be included in the terms and concepts related to the formation of the insurance fund:
The following parties participate in insurance relations:
Insurer - legal entities specializing in providing insurance services and having the appropriate license. An important part of business activity. According to the Law of the Republic of Uzbekistan "On Insurance Activities", a legal entity that undertakes to pay insurance compensation (insurance money) in accordance with an insurance contract is considered an insurer. .
Insurers can have different forms of ownership (state insurance organizations, joint-stock insurance organizations, and mutual insurance companies). Organizations conducting insurance activities must have an appropriate license from a special state body.
The insured is a legal entity or an individual who has established a specific insurance relationship with the insurer and pays the corresponding insurance premiums.
Insurance brokers are legal entities acting as mediators between the insurer and the insured. By its status, the intermediary protects the interests of the insured. The mediator receives an appropriate mediation fee for the services rendered.
Risk is the occurrence of a risk in one expected event. The variety of manifestations of the concept of risk, the severity of the consequences arising from its occurrence, the impossibility of absolute liquidation of the damages caused by the occurrence of the risk created the basis for the organization of insurance work. Thus, the risk creates conditions for the formation of insurance legal relations. Risk is the sum of the singularity and interconnectedness of risky situations.
In the science of insurance, the concept of risk is given different tariffs. In particular, a risk is a concrete event or a set of events, in case of which the insurance company pays coverage. The risk is directly connected with the object of insurance. A risk can have a negative impact on an object and can damage or destroy it. Because of this, risk is the only random phenomenon, the occurrence of which does not depend on the human mind or will. The list of insurance risks constitutes the scope of insurance liability of the insurer.
The monetary expression of the risk assessment is the insurance tariff rate; insurance object; type of insurance liability.
Medical insurance is one of the means of public health protection. Provision of free medical services through the insurance policy in the event of an insured event. The insurance company pays the costs related to medical care. Health insurance is either mandatory or optional.
Property insurance is an independent branch of insurance, in which interests related to the preservation of various types of property are considered the object of insurance relations. The insured's personal property, assets under his care can be insured. As the insured, not only the owners of the property, but also individuals and legal entities responsible for the preservation of the property can be.
The net rate is the main component of the gross rate. The net rate is the amount of funds intended to pay the insurance coverage, which can be up to 90 percent of the gross rate.
Compulsory insurance is a legal form of insurance relations. Compulsory insurance is carried out on the basis of legal documents. This document specifies the number of objects to be insured, the extent of insurance liability, the rights and obligations of the parties participating in insurance relations, and other details. According to the current legislation, compulsory insurance in Uzbekistan can be provided by any insurance company with the appropriate license. There are also types of compulsory state insurance. For example, military personnel, employees of the state customs and tax service, and other categories of persons are subject to compulsory state insurance against accidents. Insurance premiums for this type of insurance are made at the expense of the State budget.
Placement of risks:
1) the process of initiation of insurance legal relations arising due to the insurance interest. Primary, secondary and tertiary placement of risks means direct insurance, reinsurance and retrocession, respectively. In an economy based on market relations, risk placement is carried out in the insurance market through insurance intermediaries;
2) the method of simultaneously insuring large and dangerous risks in parts in several insurance companies with the help of an insurance broker. Among several insurance companies, one stands out as a leader, and it approves the terms of the insurance contract and assumes the appropriate part of the risk. Then, the broker places the rest of the risk with other insurance companies.
Insurance is organized and related to the use of it in order to cover the damage caused by the occurrence of various unpleasant events and to provide financial assistance to citizens when relevant insurance events occur in their lives (target monetary funds ) sum of economic relations. depending on the condition of the transfer, insurance is mandatory and optional. According to the object, it is divided into property, personal and liability insurance. Risk is the basis of insurance. Insurance is a way of spreading risk.
2. Terms related to the use of the insurance fund include:
General policy is a written agreement between the insurance company and the insured. In accordance with this agreement, during the relevant period, the insured gives all objects to the insurance company for insurance. In foreign experience, this transaction is called "open policy" or "policy-subscription". Insurance based on this general policy is common in foreign trade cargo insurance. It is enough for the insured to submit an application to the insurance company with information about each shipped cargo (cargo weight, insurance amount, shipping and receiving points), and the cargo is automatically insured. .
Quota reinsurance — the insurance company, in agreement with the reinsurer, assigns a portion of the risks to the reinsurer. This operation is formalized through a quota agreement. The reinsurance company will be awarded the appropriate portion of the insurance premium and the reinsurance company will participate in the compensation of losses incurred proportionately.
Intermediary fee is a fee paid by an insurance company to intermediaries (insurance broker, agent) for attracting customers to insurance. The amount of brokerage fee is paid as a percentage of the insurance premium, depending on the type of insurance and the size of the received premium.
Insurance policy is a document confirming the conclusion of an insurance contract. The insurance policy must contain the following details: legal address of the insurance company, name of the insured, object of insurance, amount of insurance premium, term of validity of the contract. When paying the insurance coverage, the insured must present the insurance policy to the insurance company.
Insurance deed is a document drawn up by an insurance company in the event of an insured event. The report contains the reasons for damage or destruction of property, the amount of damage and other indicators. If necessary, a written summary of the relevant organizations (firefighting, state vehicle control, agriculture, veterinary service, etc.) confirming the insurance event and property damage is attached to the document. In international insurance relations, an insurance deed is drawn up by an adjuster or accident commissioner and is essentially close to an accident certificate.
Insurance premium is a fee paid for the provision of insurance services. The amount of the insurance premium is determined as a percentage of the sum insured. The amount of the insurance premium can also be expressed in specific amounts. For example, in third-party third-party liability insurance, the insurance premium is specified in a specific monetary unit.
An insurance pool is a voluntary association of several insurance companies, without having the status of a legal entity, for the purpose of fulfilling insurance obligations and ensuring the financial stability of insurance operations. Insurance money is mainly organized for the purpose of insuring dangerous, large objects. each company monetizes its insured risk and receives a portion of the collected insurance premiums in return.
The object of insurance is the interest of citizens related to life, health, work ability in personal insurance; in property insurance, the interest of legal entities and individuals in keeping buildings, devices, vehicles, housing property, transported goods and other material assets; damage to the person caused by the actions of a natural or legal person is considered to be the object of insurance in civil liability - liability insurance. In order to assess the risk, the insurance object can be examined by the experts of the insurance company.
An insurance contract is a written agreement between two or more parties, in which the insurance company agrees to pay the insured or the insured sum in case of damage caused by the insured event. undertakes the obligation, and the insured undertakes to pay the insurance premium within the specified periods. In order to confirm the conclusion of the insurance contract, the insurer issues an insurance policy to the insured. The main, simple and additional conditions for concluding an insurance contract constitute the content of the insurance contract.
3. Internationally used terms related to insurance include:
Abandonment is the policyholder's relinquishment of the insured property in favor of the insurer in order to receive the full amount of the insurance amount (when the insured ship is destroyed, when it is lost without notice, when the ship or cargo is captured by pirates ). The application for abandonment must be filed within six months of the incident. In the legislation of some foreign countries, abandonment is considered a unilateral act of the insured. Only, English law requires the consent of the insurer for abandonment.
An accident commissioner is a natural or legal person authorized by an insurance company. Determines the nature and amount of damage to the insured ship or cargo, investigates the causes of the incident. The insurance company can appoint an accident commissioner both abroad and domestically. The legal address, telephone and telex numbers of the accident commissioner are indicated in the insurance policy issued by the insurance company. The insured must contact the accident commissioner as soon as the insured event occurs. The accident commissioner determines the level of damage to the property and, based on the order of the insurance company, can partially compensate for the damage. The accident commissioner draws up an accident certificate for the insurance company or prepares written information about the work performed.
An accident certificate is a document confirming the amount and nature of the damage caused when the property is damaged due to an insured event. The accident certificate is drawn up by the accident commissioner (adjuster) and presented to the insured at the expense of the appropriate mediation fee. The accident certificate is attached to the policyholder's application for insurance coverage and serves as a basis for the insurance company to pay the coverage.
Adjuster is a natural or legal person who protects the interests of the insurance company in the settlement of the objection expressed by the insured in connection with the occurrence of an insured event. He tries to agree with the insured on the amount of insurance coverage to be paid to him. The adjuster studies and analyzes the reasons for the insurance event. Based on the results of this analysis, he prepares an expert opinion for the insurance company and performs the function of an accident commissioner. The function of an adjuster can be performed by a structural department of an insurance company or a specialized organization.
Actuary means accountant when translated from Latin. An expert in the field of insurance mathematics who has mastered the theory of actuarial calculations. He is engaged in calculation of insurance tariffs and development of methodology, making calculations related to the formation of insurance reserves for long-term insurance types. Currently, the Institute of Actuaries is operating in England. There is an international association of actuaries.
Actuarial calculations are a set of economic-mathematical methods for calculating insurance tariff rates. These calculations are based on the law of large numbers. The methodology of actuarial calculations is based on the laws of demography, the theory of probabilities, the amount of the tariff rate depends on the probability of occurrence of insurance events. Demographic information is used to stratify the insurance tariff rate according to the age of the insured in the life insurance of citizens. Sum assured for long term life insurance is paid when the insured person dies or reaches a certain age. In order to form a sufficient insurance fund, the insurer needs to know how many people are likely to die or reach a certain age during the contract period. Based on statistical information about the death rate of the population, it is possible to calculate the probability of reaching different ages and make a table about the death of citizens. Based on this table, the benefit and life insurance rates can be calculated.
Underwriter – 1) a person appointed by an insurance company, authorized to insure various risks. The insurance company is responsible for the formation of the insurance portfolio. It is necessary for him to have the appropriate qualifications for concluding insurance contracts, assessing risks and determining the rate of the insurance tariff; 2) a member of Lloyd's Insurance Corporation, which issues Lloyd's insurance policies; 3) a natural or legal entity engaged in selling insurance policies to potential customers or providing high-level consulting services in the field of insurance to interested parties.
Underwriter's policy is a policy aimed at reviewing new offers related to insurance and making decisions about accepting or rejecting this offer.
Annuity is a concept that summarizes all types of annuity and benefit insurance. In this case, the insured pays the insurance premiums to the insurance company at the same time or for several years. The insured will then receive income from the insurance company for the rest of their life. Annuity insurance, which is a type of annuity, is now widely developed in Great Britain, France and the United States.
A dispatcher is a specialist who prepares calculations for the distribution of damages between the ship, cargo and freight in the event of a general accident in sea transport. In developed countries, dispatcher functions are performed by special companies. Calculations on the distribution of damages are called dispatches, and the fee for drawing up the dispatches is paid by the interested parties (ship owner, cargo owner, person buying the cargo).
Europolis is an insurance policy confirming the fact of concluding an insurance contract in the countries of the European Union.
Covernota is a document issued by an insurance intermediary to the insured and confirming the conclusion of an insurance contract by the insured. During the period specified in this document, the insurance broker must issue an insurance policy to the insured. Because the cavenota is not a legally binding document for the insurance company.
