ACCOUNTS RECEIVABLE / BOOK DEBTS:
Uncollected debts as a result of physical loss or damage to accounting and similar records.
ADJUSTMENT PREMIUM:
The premium determined after expiration of the policy on the declaration of details such as wages, stock values etc, or the loss experience under the policy. The original premium charged on such policies may be referred to as the deposit premium, the base premium or the initial premium.
ADVANCE BUSINESS INTERRUPTION:
Consequential loss resulting from loss or damage to property whilst undergoing construction, installation etc.
Includes loss from deferral of planned trading revenue, continuance of overheads, extended interest charges etc.
ADVICE:
An express or implied (direct or indirect) recommendation or opinion that is intended to influence a person in relation to a Financial Product.
AFS LICENSEE:
A party who possesses an australian financial services licence.
AUSTRALIAN FINANCIAL SERVICES LICENCE:
A licence issued pursuant to the Financial Services Reform Act 2001.
AGGREGATE LIMIT:
Usually the total amount of money an insurance company will pay under a Liability policy for all claims which arise during the period of insurance.
AIRPORT OPERATOR’S LIABILITY:
Covers third party liability which arises out of the ownership, maintenance or operation of registered aircraft landing areas.
ANNUAL PREMIUM:
The amount of premium which must be paid annually to meet the contractual requirements of the policy and keep it fully in force.
ASIC:
The Australian Securities and Investments Commission.
ASSURANCE:
A term commonly used to distinguish life “assurance” from general (ie, non-life) insurance.
AUTHORISED REPRESENTATIVE:
A party who provides advice or dealings relating to financial services business and includes both a corporate entity and natural persons.
AVERAGE OR CO-INSURANCE CLAUSE:
A clause in a policy requiring that, where property is insured for less than its full insurable value, the Insured is required to bear a proportion of any loss. The proportion is the amount by which the property is underinsured expressed as a percentage of its full insurable value at the time of the loss.
It is common practice for insurance contracts to be subject to Average or Co-Insurance which means that if the value of the property insured exceeds the sum insured, then you would be required to contribute proportionally to each and every loss.
AVIATION HULL AND LIABILITY:
Covers loss of or damage to the insured aircraft and liability to third parties, including passenger liability, arising from the operation of the aircraft.