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