Ex gratia payments are payments made by a company to someone without any legal obligation to do so. These payments are often made to compensate someone for a loss or inconvenience, and they are usually made in addition to any other payments that may be due. There are many reasons why a company may make … Read more
The First Notice of Loss (FNOL) is the first notification to an insurance company that a policyholder has suffered a loss. The FNOL is typically made by the policyholder, but can also be made by an authorized representative, such as a broker or agent. The FNOL is an important step in the insurance claims process, … Read more
What is an Insurance Underwriter? An insurance underwriter is a professional who assesses insurance risks and decides whether or not to provide coverage. Underwriters also determine the terms and conditions of coverage. What is the difference between insurer and underwriter? An insurer is a company that provides insurance coverage to policyholders. An underwriter is a … Read more
Reinsurance ceded is insurance that an insurer purchases from another insurer to help spread the risk. The insurer who purchases the reinsurance is called the ceding company, while the insurer who sells the reinsurance is called the assuming company. Reinsurance ceded is often used by insurers to protect themselves from large losses. For example, if … Read more
Takaful is an Islamic insurance system where members contribute money into a pooling system in order to provide protection against loss or damage. The key difference between takaful and conventional insurance is that takaful is based on the principles of mutuality and cooperation, whereas conventional insurance is based on the principles of individualism and profit-seeking. … Read more
In insurance, the earned premium is the amount of premium that an insurer has earned for a policy that is currently in force. The earned premium is important because it represents the portion of the premium that the insurer will keep regardless of whether or not the policy is eventually terminated. The earned premium is … Read more
Credit insurance is insurance that protects the holder from loss in the event that the borrower defaults on a loan. The insurance can be purchased by the lender or the borrower, and it can cover all or part of the loan. How does trade credit insurance work? Trade credit insurance is insurance that protects businesses … Read more
A hammer clause is a type of clause often found in insurance contracts. It typically provides that, if the insurer and the insured cannot agree on the amount of damages to be paid in the event of a covered loss, then the insurer will pay a specified sum of money, and the insured will waive … Read more
Travel insurance is a type of insurance that covers the medical and financial expenses that may be incurred while traveling. It is designed to protect travelers in the event of an emergency, such as an accident or illness. Travel insurance may also provide coverage for lost or stolen luggage, trip cancellation, and delays. What does … Read more
Bailee’s customer insurance is a type of insurance that provides protection for a business that is responsible for the care of another person’s property. This can include businesses such as storage facilities, car dealerships, and jewelers. The insurance can cover damages that occur to the property while it is in the care of the business, … Read more
