The following is a general description of the terms found on this web site. The terms are found in the General Terms & Conditions of a policy will actually apply to any policy issued.

Actuarial mathematics – a separate part of financial mathematics, the examination subject of which is the calculation of premium, insurance reserves, insurance solvency, creation of mortality tables and estimation of development trends. It mostly uses the methods of mathematical statistics, probability figures, laws of arithmetic and geometric progression and others.

Additional insurance - insurance, which extends insurance coverage by the coverage of additional insurance risks within the scope of the insurance policy.

Agency – commercial representation of the insurance company for a specified region.

Authorised person – person(s) specified by the policyholder, to whom the right to a settlement should be created, if the insurable event is death of the insured. If no authorised person is specified at the time of the insurable event, or if he/she does not acquire the right to the settlement, persons pursuant to the Civil Code have this right. The policyholder has the right to change the authorised person until occurrence of the insurable event by means of a written notice delivered to the insurer. 

Broker/agent – a professional agent of business transactions. In insurance business, insurance is arranged in favour of some insurance companies.

Confirmation amendment (to the insurance policy) - a document confirming the performance of alterations to the insurance policy. Alterations to the insurance policy included in the amendment become effective from the validity date specified in the amendment.

Convalescence – recovery after an operation or illness

Death – the stop of the important functions of a human body, especially the stop of cardiac activity, which leads to the restriction and the stop of cerebration. Death can be caused by illness or an injury.

Diagnosis - determination, detection of a negative effect, condition, etc. The content of this term is important for underwriting in life and personal accident insurance and for the settlement of claims.

Disability – permanent or temporary disability to perform any business activity or any job yielding a profit or an earning. We distinguish disability: permanent or temporary, permanent disability can be full or partial.

Endowment – reaching the insurance termination or the period agreed in the insurance policy.

Entry age – the age of the insured at the insurance commencement date. It is the age the insured reached on the day of his/her last birthday preceding the insurance commencement date.

Exemption from payment of the insurance premium – an advantage, which is provided by the insurance company to some insured persons, in the form of waiving the claim for the insurance premium. It relates to cases when the policyholder is not able to perform any business activity or any job yielding a profit or earning due to full and permanent disability, so the insurance company shall exempt him/her from the obligation to pay the premium. However, insurance shall further remain effective without any change in the scope of insurance coverage.

Extra interest benefit – a part of the revenue gained from investment of corresponding mathematical reserves distributed among insurance, which have the right to the share in the supplementary profit.

Group insurance – insurance of groups of insured persons, which is performed in a simple form using lists within one (so called "frame") insurance policy. At AMSLICO AIG Life, these forms of insurance are provided by the Department of Group and P/A Insurance.

Hospitalization – a stay in a medical facility for the minimum period of 24 hours.

Injury – a health disorder, which has been caused as a result of certain external conditions, which had effect for a certain time. It can be either temporary or permanent disorder of physical or mental health. Injury is usually defined as an unexpected and sudden effect of external force or own physical strength of the insured.

Insurance commencement – the creation date of insurer’s duty to perform and his/her right to the insurance premium. It is stipulated in the insurance policy or in the confirmation amendment.

Insurance period – a time period between the insurance commencement and termination, which are specified in the insurance policy or the confirmation amendment.
 
Insurance business supervisory body – a government body, which controls compliance with acts on insurance business and other legal regulations.

Insurance termination - date, on which the validity of the insurance terminates, and which must be uniquely defined in the insurance policy.

Insured sum – the sum agreed in the insurance policy, according to which the amount of insurance benefit is determined in case of occurrence of an insurable event.

Insurable event – a random event specified in details in the insurance policy, the occurrence of which leads to the obligation of the insurance company to pay the insurance benefit.

Insurance policy – a written agreement between the insurer and the policyholder, in which the insurer commits itself to provide the insurance benefit in agreed scope in case of occurrence of an insurable event, and in which the policyholder commits himself/herself to pay the premium. General insurance terms and conditions of the insurer approved by the Insurance business supervisory body, to which the insurance policy refers, is part of the insurance policy.

Insurance coverage – data file describing possible insurable events and corresponding benefits within the insurance policy.

Insurance benefit – the amount determined based on the insured sum specified in the insurance policy or in the confirmation amendment, which is provided by the insurer in case of occurrence of an insurable event under the insurance policy.

Insurance terms and conditions – a set of terms and conditions defining the insurance period, insurable event, scope and maturity of the insurance benefit and other rights and obligations of contractual parties in relation to insurance. They are divided into general insurance terms and conditions and special insurance terms and conditions.

Insurance reserves – financial resources of the insurance company serving as a source of coverage for obligations resulting from insurance policies taken out and administered.

Insurance risk – a possibility of occurrence of a random event, which is related to the obligation of the insurer to provide the insurance benefit.

Insurance agent – insurance company’s representative performing publicity for insurance, who is not employed with the insurance company.
 
Insurer – any company dealing with insurance activities pursuant to the Act on Insurance. This concerns any entity, which provides insurance and performs its administration based on insurance policy taken out. The insurer can be the insurance company. In insurance, the obligations of the insurer are determined in the insurance policy.

Loan from basic life insurance – a loan, which is provided to the policyholder, based on a written application, and the only guarantee of which is the insurance policy and the obligatory transfer of rights from the insurance policy by the policyholder to the insurer. It can be granted if basic life insurance has created surrender value and the insurance policy is valid.

Mortgage – a guarantee of a real estate, which allows the creditor to primarily cover his/her obligation from execution selling of this real estate, if the debtor does not pay his/her debt with interest in the specified period.

Maturity date – the date, to which insurance premium must be paid, i.e. the payment must be credited to the insurer’s account.

Minimum insured sum – the sum defined by the insurer for specific basic insurance or additional insurance.  

Market share – a qualitative success indicator of a business entity in relation to other entities conducting business in a given area. It expresses the percentage ratio of the business entity to the total business volume in the given business area.

Payment of the insurance premium – making the payment for insurance, which the insurer provides to the insured under the insurance policy. A single premium and a premium for the first insurance period are due on the insurance commencement date. Each subsequent premium is due on the first day of the respective insurance period.

Premium – the price for the insurance agreed by contractual parties in the insurance policy.

Policyholder – a natural person or legal entity, who took out the insurance policy with the insurance company and is obliged to pay the insurance premium.

Permanent disability caused by an injury – personal injury to the insured according to accident insurance/additional insurance terms and conditions of our company – this term is not identical with the term "invalidity" used in social security.

Premium outstanding – the premium not paid on the specified date. If the subsequent insurance premium was not paid within two months from its maturity date, insurance shall cease for non-payment and the insurance company has the claim for the proportional part of the premium for this period (the period, for which it provided insurance coverage). 

Profit – a quantitative or qualitative indicator of the results of company’s economic activities. It is calculated as the difference between revenues and costs.

Reporting of an insurable event – notification on the occurrence of the insurable event to the insurance company, for which a claim for the benefit from the insurance policy is made. It must be performed in writing and immediately, whilst the insurance company must have the possibility to verify all details of the insurable event.

Risk insurance – insurance, which does not include the savings element, „if nothing happens, insurance premium is not returned”.

Single insurance premium – insurance premium paid once for the whole insurance period.

Settlement of insurable events – reviewing the insurable event in order to qualify the claim for the insurance benefit. In case of an authorised claim also the payment of the benefit.

Surrender value – a part of the insurance value, which will be paid to the insured in case of insurance cancellation before the insurance period termination in life or retirement pension insurance provided that the given insurance type generates the surrender value.

The insured – a natural person, to whose life or health insurance is applied.

Underwriting – an operating procedure, which results to estimation of risks and prerequisites of claims occurrence in terms of material, monetary and time expression. For the insurance company, underwriting is important for the specification of insurance conditions and insurance rates.

Withdrawal from insurance policy - the procedure is applied, if the policyholder or the insured wilfully violate the duty to truly and fully answer all the questions of the insurer related to the arranged insurance, and if after truly and fully answering the questions the insurer would not have taken out the insurance policy.