Car Insurance Jargon
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IFA - A broker or other intermediary authorised
to sell or advise on the policies offered by any insurance
company, as well as other financial service providers. In
theory, IFAs should look at the entire financial market
before making a selection and offer unbiased advice and
access to all suitable financial products. they sometimes
still have access to special deals not on offer elsewhere
because they may subscribe to a mortgage panel along with
other advisers and brokers. Together they convince lenders
to provide special packages in return for their continued
custom. The trouble is, they have to deliver a certain level
of business to remain on the panel, so they may favour some
products over others.
Indemnity - The principle by which insurance policyholders
are put in the same financial position after a loss as they
were immediately before it.
Insurance - An agreement under which individuals,
businesses, and other organisations, in exchange for payment
of a sum of money (a premium), are guaranteed indemnity
for losses resulting from certain events or conditions specified
in a contract (policy).
Insurance Premium Tax (IPT) - A Government tax
charged as a percentage of insurance premiums. Insured A
person or organisation covered by an insurance policy.
Insured car - The insured car as specified by its
registration mark on your current certificate of motor insurance.
Some motor insurance policies insure the vehicle, and some
insure the driver.
Insurer - The party to the insurance contract who
promises to pay losses or benefits, usually an insurance
company.
Intermediary - A person or organisation that offers
advice and arranges policies for clients. Under UK regulations,
intermediaries must be either tied, whereby they represent
only one company in the case of life business or a limited
number of companies for general business, or independent,
whereby there is no limit on the number of companies with
which they can deal.
Introducer - Individuals, companies or websites
that inform borrowers about certain products or services
and ‘introduce’ them to the lender. Introducers receive
a fee for passing on new business.
