A
Accident
A sudden, violent event, external to and independent of the insured's will, that causes bodily injury, disability or death.
Increase in risk
A circumstance arising after the contract is taken out that increases the likelihood of a claim or its severity. The policyholder is required to report it to the insurer.
Extension of cover
Adding to a policy already in force some cover that was not originally taken out, normally with an increase in the premium.
Insured (party)
The person on whom the covered risk falls and who holds the insured interest. Not always the same person as the policyholder.
Travel assistance
Cover for helping the insured away from home: towing, on-site repair, transport, accommodation and meals.
Self-insurance
The decision to bear the financial consequences of a risk oneself, without transferring it to an insurer.
Claim notification
Informing the insurer that a claim event has occurred. The law sets a deadline of seven days unless the policy extends that period.
B
Technical basis
The actuarial document in which the insurer justifies how the premiums and provisions for a product are calculated.
Beneficiary
The person named in the policy to receive the benefit if a claim occurs, particularly in life and accident insurance.
C
Sum insured
The maximum amount the insurer undertakes to pay for a claim or for all the claims in a given year.
Waiting period
The time that passes from the policy taking effect until a particular cover begins to apply.
Letter of conditions
A document in which the insurer sets out the terms on which it agrees to insure a particular risk.
Co-insurance
Sharing the same risk among several insurers, each of which takes on a percentage of the sum insured and the premium.
Sum-insured compensation
An arrangement that allows any shortfall in the sum insured for the building or its contents to be offset against the other if it is over-insured.
General conditions
Clauses common to all policies of the same class from a given insurer: what is covered, what is excluded and how a claim is handled.
Special conditions
Clauses specific to each contract: the insured, the particular risk, sums insured, cover taken out, premium and term.
Consorcio de Compensación de Seguros (Insurance Compensation Consortium)
A public body that covers extraordinary risks — earthquakes, floods, terrorism — and acts as a guarantee fund in certain cases.
Buildings (structure)
In property insurance, the building itself: structure, roofing, floors, fixed installations and attached fixtures.
Contents
The movable property inside the property: furniture, household goods, stock, machinery or equipment.
Insurance cooperative
A mutual-type insurer in which the members are also policyholders.
Co-payment
A fixed amount the insured pays for each medical service under certain types of health insurance.
Insurance broker
An independent intermediary who advises the client, compares what is available on the market and represents the insured and their interests, not the insurer's.
Instalment
The amount the insured pays periodically; strictly speaking, each of the parts into which the annual premium is split.
D
Consequential loss
Financial loss that arises indirectly from a claim, such as loss of profit due to a business being unable to operate.
Legal expenses (cover)
Cover for defending the insured's interests, claiming for their losses, and telephone legal assistance.
Deductible
See excess.
Long-term care (dependency)
A situation in which a person needs another person's help to carry out basic day-to-day activities.
E
Forcible theft
The taking of property using violence or intimidation against a person, as distinct from burglary using force against property.
F
Excess
The amount the insured has to bear for each claim. It lowers the premium and avoids the processing of small claims.
G
Acquisition costs
Costs incurred by the insurer to win and set up a contract, including remuneration for the intermediary.
I
I.C.E.A.
Investigación Cooperativa entre Entidades Aseguradoras, a body that produces studies and statistics on the Spanish insurance sector.
Compensation
The financial benefit with which the insurer makes good the loss suffered by the insured, within the limits of the policy.
Under-insurance
A situation in which the sum insured is lower than the true value of the property. In the event of a claim, the average clause applies.
Insurable interest
The financial relationship between the insured and the property or person that is the subject of the insurance, without which the contract is not valid.
L
Waiver of premium
A situation in which the policy remains in force without the policyholder having to keep paying premiums, normally due to disability.
M
Multi-risk (combined) insurance
A policy that brings together several classes of cover in a single contract, such as home, shop or industrial multi-risk policies.
N
Pre-contractual information notice
A document the intermediary must give the client before taking out the contract, with details of the intermediary and the features of the product.
P
Period of cover
The period of time during which the policy is in force and claims that occur are covered.
Policy
The document that records the insurance contract: general, special and, where applicable, particular conditions.
Premium
The price of the insurance. The net premium relates to the risk itself; the total premium adds surcharges, taxes and the Consorcio de Compensación de Seguros surcharge.
R
Reinsure
An arrangement whereby an insurer passes on to another entity part of the risks it has taken on, in order to spread its exposure.
Average clause
A reduction in the compensation paid, in the same proportion by which the sum insured is lower than the true value of the property.
Reinstatement
Bringing back into force a policy that had lapsed, generally due to non-payment of the premium.
Liability (third-party liability)
The obligation to make good damage caused to third parties. A liability policy takes on that obligation within the agreed limits.
S
Claim
A sudden event whose consequences are wholly or partly covered by the policy.
Over-insurance
A situation in which the sum insured exceeds the true value of the property. It does not entitle the insured to recover more than the loss actually suffered.
Sum insured
See sum insured (capital asegurado).
T
Policyholder
The person who takes out the policy and is responsible for paying the premium, whether or not the same person as the insured.
U
UNESPA
Asociación Empresarial del Seguro (Business Association of Insurers), the trade body that brings together Spanish insurance companies.
V
Replacement value
The cost of replacing an item with another of the same characteristics in new condition, without deducting depreciation for use.
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