Quantum
Amount or quantity.

Quasi-Contract
An undertaking that is not a written contract but is an implied contract. In insurance it is most frequently found in reference to preservation of salvage.

Quotation (Quote)
The amount of premium that an insurer sets as the price to cover a particular risk.

Rate
The price for $100 or $1,000 of insurance, usually for one year, expressed in dollars and cents. Alternatively, the rate is the premium for a specified amount of insurance, for a specified time.

For some types of insurance in some jurisdictions legislation requires rates to be applied consistently to similar risks, and certain jurisdictions require regulatory approval of rates, e.g. auto.

In addition to policyholder premium rates, the industry commonly uses the term "rate" in reference to re insurance premium rates, and to commission costs for both insurance and re insurance.

Receiver
Person appointed to hold in trust and to administer property of insolvent companies.

Refund
A return to the policyholder of part of the paid premium, because of cancellation, suspension, reduction in insurance coverage, or because of rate reduction.

Registered Insurer
The registration of a reinsurer is significant in determining whether an insurer can obtain full credit with regulators for the transfer of insurance liabilities to a reinsurer. Any reinsurer not under the regulatory control of a Canadian insurance regulator (is not licensed) is deemed unregistered and the primary insurer must cover any liabilities transferred to this unregistered reinsurer.

Note: Registration (corporate), should not be confused with Licensing (operations).

Regulator
The federal, provincial or territorial government agency responsible for the control and regulation of the insurance industry under its jurisdiction.

Reinstatement
The reactivation of suspended or cancelled insurance. Restoration of full amount of insurance or re insurance after a claim has been paid, with or without the payment of additional premium.

Release
A discharge from obligation or responsibility. To let go of, or give up a legal claim. The most common types in insurance are: First Party Release - between the insured and the insurance company. Third Party Release - between the insured and a third party. Indemnifying Release - between the insured and a guardian for a minor or other person not legally competent.

Removal
The standard fire insurance policy insures against damage done in removing the insured property from the path of the fire or other insured peril (if loss is mitigated).

Removal also may mean the taking of property to some place other than that at which it was insured.

Renewal
A certificate which attests to the fact that an insurance policy has been extended for another term.

Renewal Premium
The premium for the new term of the policy.

Repairs
Generally an insurance policy will set out the conditions for an insured to effect repairs to insured property. Ordinary repairs are usually permitted without notice to the insurer.

Replacement
Most policies of insurance of property give the company the right to substitute other property of like kind and quality for insured property which has been damaged or destroyed. This is making a replacement.

Replacement Cost Clause
Applies generally to some fire insurance policies where a special cover may be purchased so that in the event of fire, repairs or replacement will be made with material of like kind without cost to the insured for depreciation or betterment.

Replacement Value
The cash value representing what it would cost to replace the particular article which is the subject of the insurance.

Representation
The acceptance or rejection of an insurance risk and the amount of premium that would be required, is determined by information submitted by the person applying for such insurance.

Statements which would normally lead the company to decline the acceptance of a risk, or to charge a much higher rate, are material to the risk and are commonly considered "warranties."

All other statements such as the insured's address, etc. are referred to as mere "representations" to distinguish them from the more important statements considered to be "warranties."

The penalty for false information on material facts or "warranties" may be voiding of the policy.

Rider
Another name for an endorsement.

Risk
The chance of loss. Specifically the possible loss or destruction of property or the possible incurring of a liability. Sometimes refers to the subject of an insurance contract.

Robbery
The taking of another's property by force or threat of force.

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.