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Term | Definition |
---|---|
no claims bonus | when the driver has made no claim against the insurance cimpany for some years |
risk | the higher the degree of risk the higher the premium |
premium | the amount that must be paid to cover the risks in the proposal |
claim | if a risk which is covered by the policy actually happens you will recieve compensation for the loss suffered |
indemnity | a person may not make a profit from insurance |
utmost good faith | a person must tell the truth when applying for insurance |