Car Insurance Jargon
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Settlement - When an insurer pays a claim.
Subsidiary company - Insurance is often provided
by a subsidiary company, which is more than 50% owned by
another company. This allows the company to consolidate
all its trading results and assets into the group results
of the company, sometimes beneficial for taxation, accounting
or other reasons.
Substandard risk - Where the risk of a claim against
a policy is higher than average.
Sum insured - The maximum an insurance company will
pay for a claim.
Surrender - Where you cancel a policy and usually
receive a reduced payout, due to the impact of charges.
Surrender value - The amount received when converting
a policy into cash, often zero.
