We put the questions we’re most frequently asked to Martin Shaw, Chief Executive of the AFM.

Jargon buster

Financial services can be complicated. We thought it might be useful to compile a list of some of the terms frequently used with everyday explanations. Please let us know if we can add more terms.

Bona Fide Something done honestly or in good faith
Discontinue To stop paying into a policy
Endorsement Something that is added to an insurance policy document
Excess This is a set amount that you would normally pay towards the cost of a claim
Inception Date When cover begins on a policy
Material Fact A piece of information that might affect whether you are insured and at what price. If you don’t declare a material fact when buying insurance it might affect a later claim
No Claims Bonus Rewards you for not making a claim on an insurance policy. Worth adding to the cost of the insurance, especially on your car
Policy Conditions Rules of the game related to your insurance
Policy Document This document sets out the details of your policy and you should always store it somewhere safe
Premium The payment you make to your insurance policy
Public Liability Provides protection for claims made against you for injury or damage to other people or their property as a result of your negligence
Warranty This is a condition that you need to comply with; otherwise any future claim may not be valid

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