I
“Identity Fraud” – fraud that involves someone pretending to be someone else in order to steal money or obtain the other persons property or goods
“Inception date” - the date on which the insurance becomes operative
“Indemnity” - the insurance principle by which policyholders are put in the same financial position after a loss as they were immediately before it
“Index-linked” - Insurance where the amount of cover changes automatically in line with an index – e.g. the cost of rebuilding a house or replacing its contents Household building sums insured are linked to a rebuilding cost index and contents cover increases annually in line with an index reflecting replacement costs.
“Insurable Interest” - a principle of insurance which states that someone may only take out insurance if he/she stands to suffer a financial loss from an event that is covered by a policy
“Insurance” - a service that offers compensation for something that may or may not happen.
“Insurance broker” - an intermediary offering a service on the basis of professional expertise and competence - a broker offers advice and arranges insurance usually as agent for the insured, remunerated by a commission from the insurer.
“Insurance Company /Insurer” - a firm that takes on the risks under the policies it sells in return for the payment of premiums
“Insurance intermediary” - a ‘middleman’ through whom the insurance is arranged
“Insurance premium tax (IPT)” - a tax levied by HM government on insurance premiums. The current rate is 5 per cent of gross premium (17.5 per cent for travel insurance). Risks located outside the UK are exempt e.g. Isle of Man and Channel Islands
“Insured” - a person or business covered by an insurance policy - also known as the policyholder
“Investment Income”- income earned on the money held by insurers on behalf of policyholders, having been received in premiums but not yet paid out on claims.