| |
| Abandonment: Relinquishment
of ownership of property that has been lost or damaged
and "abandoned" to the Insurance Company for the purpose
of claiming a total loss. |
| Abnormal
Return: Stock return beyond that predicted
by general market movements. Many active portfolio managers
seek out investment opportunities that offer abnormal
returns. |
| Above-Ground Swimming Pool: Swimming
pool built above ground level. |
| Active
Portfolio Management: A money manager
(investor) attempts to earn a return above the risk-free
rate or an index through forecasting of broad market
trends or by identifying sectors or securities that
are mispriced in the market. |
| Actual
Cash Value: The actual or current value
at the time of the loss. Actual cash value takes depreciation
into consideration. |
| Additional Insured: A person
other than the named insured who is protected by the
terms of the policy. Most automobile policies, for example,
insure a specific individual as an insured, but also
insure anyone driving with the insured's consent. The
additional insured may be "named" or "unnamed". |
| Additional Living Expense Insurance: Coverage
applicable when an insured's dwelling is damaged by
an insured peril to such an extent that one cannot live
in it until repaired. This insurance pays the extra
amount it costs to live elsewhere until repairs are
made, such as the cost of living in a hotel. |
| Adjuster: An individual
who represents an insurer on investigations and dealings
with respect to settlement of claims. This may be a
salaried employee of an insurer or one who operates
as an independent adjuster. |
| After-Tax: The final cost
of an investment to an investor in a particular tax
bracket, after calculating the effect of income tax.
|
| Alarm
System: System guarding against theft
and/or fire. |
| All-Risk
Policy: A name given to an insurance
policy that covers against the loss caused by all perils
except those which are specifically excluded by the
terms of the policy. |
| American
Depository Receipt: An instrument traded
on the New York Stock Exchange (NYSE) that represents
ownership in a foreign company (valued in American dollars).
|
| Amortization: The paying
back of a debt by spreading the payments (which include
a portion of both principal and interest) over a period
of time. |
| Amount
of Insurance: The limit of payment for
which an insurer is liable under a policy. |
| Annuity: A continuous disbursement
of a fixed sum of money for a given period of time.
It may be a fixed annuity, offering a constant rate
of interest, or a variable annuity, which is adjusted
according to the performance of its underlying assets.
|
| Applicant: The person or
firm requesting insurance. |
| Appraise: To set and state
in writing the true value of property. |
| Arbitration: Referral of
a dispute to one or more impartial persons chosen by
the disputing parties to determine their rights and/or
obligations. The parties agree in advance to abide by
the arbitration agreement. Each party has a chance to
be heard. |
| Arbitration Clause: A clause
in an insurance policy that provides arbitration in
the event of a disagreement. |
| Arson: The deliberate and
intentional burning of property by its owner or by another
person. |
| Asset: What a firm or individual
owns. |
| Asset
Class: A way of describing a group of
investments with similar performance characteristics.
Commonly used categories of assets include long-term
equity, international equity, government bonds, corporate
bonds, precious metals, and cash. |
| Asset
Mix (Asset Allocation): The allocation
of money to be used for investment purposes between
different types of investments such as stocks, bonds,
and treasury bills. |
| Automobile Fleet: A group
of automobiles under the same ownership and management
which may, because of the number, justify a discount
in the insurance premium. Usually five or more vehicles.
|
| |
| |
| Back-End
Load Fund: A type of mutual fund that
charges the investor a fee when the fund is redeemed
within a set period of time following purchase. |
| Bailee: Person to whom goods
or property are entrusted for a stated purpose, whether
in exchange for payment (consideration) or not. Also
called a Depository. |
| Balanced
Fund: A mutual fund that has both debt
and equity holdings (stocks and bonds). |
| Basis
Point (bps): One one-hundredth (1/100
or 0.01) of one percent. A commonly used measurement
of yield differences on assets. 100 basis points = 1%.
|
| Bear
Market: A stock market whose index of
representative stocks (such as TSE 300 Composite Index)
is declining in value (usually 20% or more) for a period
of time. |
| Benchmark: A predetermined
set of securities that are used as a comparison for
the performance of a fund. The benchmark serves as the
starting point for the money manager who adjusts the
proportions of the funds in the benchmark in an attempt
to capture superior returns through market timing. |
| Benchmark
Error: This occurs when an inappropriate
benchmark or index is used as a comparison for the performance
of a fund. For example, using the TSE 300 (a Canadian
stock index) as a benchmark for a fund constructed completely
of foreign stock. |
| Beta: Statistical term used
to illustrate the relationship over time between the
degree of price changes of an individual security or
mutual fund unit to similar securities or financial
market indices. |
| Bid: Proposal made by the
prospective policyholder to an insurance company to
obtain the cost of a premium for a specific period.
|
| Binder: Proof of insurance
of property that identifies the creditor or lessor,
pending issuance of a policy. The binder has the same
value as the policy, and must be terminated in the same
manner as an issued policy would be. Also referred to
as Cover note. |
| Block
Sale: A transaction that takes place
with a minimum of 10,000 stocks involved. Block sales
may sometimes be associated with either a better price
or lower cost per share. |
| Bond: A financial instrument
used to raise capital that represents an unconditional
promise to pay a principal sum of money and interest
payments at fixed dates. |
| Bond
Index Portfolio: A portfolio of bonds
that closely resembles the available grades, coupons,
and maturities in proportions or weights that resemble
the actual bond universe. |
| Bond,
Debt Instrument: Document representing
a debt, used to secure capital and accompanied by an
unconditional promise of repayment of the principal,
plus interest, on a determined date. |
| Book
Value: A company's common equity value
as determined from the firm's balance sheet. |
| Bottom-Up
Strategy: A money management style where
the manager focuses on individual stock selection and
considers economic forecasts as only secondary in the
decision-making process. |
| Break-And-Enter Theft, : Wrongful
taking of property, without the consent of its owner,
following forced entry into a building or property.
|
| Broker: An independent person
or firm that acts on behalf of the insured or investor
in placing business with insurance companies or making
investment decsions and purchases. |
| Builders
Risk Insurance: Insurance coverage on
property under construction, including loss to buildings,
machinery and equipment. Materials incidental to construction
are also covered. |
| Bull
Market: A stock market whose index of
representative stocks (such as TSE 300 Composite Index)
increases in value and is usually accompanied by higher
profits, earnings and dividends, increased speculative
activity, and a general feeling of prosperity. |
| |
| |
| Cancellation: Termination
of a contract of insurance in force. Also known as Termination,
Dissolution. |
| Capital
Gains (loss): The amount by which the
sale price of an investment exceeds (falls short of)
the original purchase price. |
| Central
Vacuuming System: Vacuum-cleaning system
integrated into a building's structure. |
| Certification: Compliance
with criteria defined by safe standards. |
| Chimney: Shaft for conveying
gases outside, connected to a dwelling via either the
exterior or the interior. |
| Claim: A requirement by
an individual or corporation to recover a loss covered
by an insurance policy. |
| Co-Insurance Clause: Clause
in an insurance policy requiring the policyholder to
maintain insurance at least equal to a specified minimum
percentage of the actual cash value, failing which the
policyholder must bear, in addition to the deductible
amount, a proportionate amount of any partial loss.
Also known as Guaranteed amount clause, Average clause,
Rule of apportionment. |
| Collateral: An asset that
is pledged as insurance against the default of payment
of a debt. |
| Collision: Accident involving
impact of a vehicle against another vehicle or an object
of some kind. |
| Commercial Occupancy: The
portion of a building used for the transaction of business.
|
| Commercial Paper: A form
of debt that is short-term and issued by large corporations. |
| Common
Stock: A security representing ownership
of a corporation's assets. Voting rights are normally
accorded to holders of common stock. |
| Comprehensive Coverage: A
type of automobile insurance coverage. |
| Consumer
Price Index: A statistical device that
measures the change in the cost of living for consumers.
It is used to illustrate the extent that prices have
risen or the amount of inflation that has taken place
and therefore the change in purchasing power of currency.
|
| Convertible: A condition
attached to a security such as a bond, debenture or
preferred share that may be exchanged by the owner,
usually for common stock of the same company in accordance
with the terms of the conversion privilege. |
| Conviction: Conviction under
the Highway Safety Code or any other legislation governing
vehicular traffic. |
| Cord
of Wood: Volume of chopped wood having
dimensions 4 ft. high by 4 ft. deep by 8 ft. long. |
| Corporation, Legal Entity, Corporate Body,
Corporate Person: Corporation that does
not include a partnership and is considered a separate
legal entity, empowered to enter into and be bound by
agreements. |
| Correlation: A measurement
that describes the relationship between the returns
of two risky assets. A positive correlation means their
returns move together (one goes down, the other goes
down). A negative correlation means the two assets'
returns move in opposite directions (one goes down,
the other goes up) offering diversification. |
| Cost: Dollar value. |
Coverage: 1. The
nature of protection afforded by a particular policy.
2. Amount of insurance applicable to a person
or property. At times, interchangeable with the terms
Insurance and Protection. |
| Creditor: Corporation or
private individual to whom a sum of money is owed. |
| Currency
Risk: The risk that the exchange rate
on a foreign currency will fluctuate in a direction
that damages the position of an investor. |
| |
| |
| Damage: Any material or
bodily loss or harm suffered by a person. Not to be
confused with Damages (financial compensation for such
loss). |
| Death
Benefit: Amount stated in policy to
be paid to a survivor upon proof of death of the insured.
|
| Debenture: A form of debt
instrument that is not backed by any specific collateral.
|
| Debris
Removal: A provision in an insurance
policy most commonly found in fire insurance, providing
indemnification for the cost of removal of the debris
after a loss. |
| Deck: Roofless platform,
generally made of wood and equipped with a rail, adjoining
a house, either overhanging or supported by pillars.
|
| Deductible: The amount of
money that the policyholder must pay when a claim is
paid by the insurance company. |
| Default
Risk: The probability that an organization
will not be able to make scheduled payments on its debt
(i.e. Not pay as promised on a bond). |
| Deferred
Profit Sharing Plan: A profit sharing
plan designed to provide benefits to the participants
upon retirement. Benefits at retirement are based upon
the sum total of the contributions made by the participants
and the investment results of the money contributed.
The plan must provide a predetermined formula for allocating
contributions made to the plan participants. |
| Defined
Benefit Plan: A pension plan where the
employer agrees to pay each employee a defined benefit
(income) at retirement (i.e. 2% per year worked of the
employee's average salary for the best five years).
With this kind of plan, the exact amount of income that
plan members receive at retirement is predetermined. |
| Defined
Contribution Plan: A pension plan where
the employer agrees to pay a defined contribution (i.e.
5% of each employee's salary or wages) into the pension
plan for the employees. The actual retirement income
can only be estimated prior to retirement. |
| Degree
of Responsability: Driver's share of
responsibility for an accident. |
| Dependencies: In civil law,
constructions and installations that are accessory to
a dwelling but separated from it by a completely free
space, or connected to it only by a fence or electrical
or other connection. |
| Depreciation: Reduction
in value of property through use, aging, deterioration
and obsolescence. |
| Dismemberment: Accidental
loss of (or of the use of) a body part. |
| Diversification: Allocating
investment money among several asset classes to avoid
excessive exposure to one source of risk. Diversification
may be among types of securities, companies, industries,
or geographic locations. |
| Dividend: A portion of the
profit of a corporation that is left over from operations
and is disbursed to its shareholders. The amount of
the dividend is decided upon by the company's board
of directors. |
| Dollar-Cost Averaging: An
investment strategy where assets are purchased at regular
intervals for a constant dollar value (i.e. $200.00
per month) instead of a constant number of shares (i.e.
50 shares per month) reducing the average share cost
by acquiring more shares at lower securities prices.
|
| Driver's
Licence, Driver's Permit: Official written
authorization permitting the bearer to operate a motor
vehicle. |
| Driving
Class: A term used when rating automobile
insurance. Driving class indicates age of the operator,
and/or sex and/or vehicle use. |
| Driving
Record: A driving record is given to
each driver. The record is determined by the experience,
prior accidents, traffic tickets (speeding) and driver
training. The better the driving record, the lower the
risk. |
| |
| |
| Eafe
Index: The European, Australian, Far
East index complied by Morgan, Stanley. It is a common
benchmark for portfolios containing foreign equities.
|
| Earned
Income: Any wages, salary, and income
from employment. |
| Earnings
Retention Ratio (plowback ratio): Amount
of money withheld from shareholders (not paid out as
dividends) that the company reinvests. A high earnings
retention ratio may decrease the amount of money an
investor receives today in the form of dividends, but
if the company can reinvest the money and earn a higher
rate of return, it may result in an increase in the
share value of the stock (price appreciation). |
| Earthquake: Rare phenomenon
involving movements of the earth's crust that may be
violent enough to cause damage to property or dwellings. |
| Effective
Date: Date on which a transaction comes
into force. |
| Efficient
Frontier: A graph with risk and return
on the horizontal and vertical axis that illustrates
the return characteristics of a portfolio given different
weightings of its assets. The ideal portfolio lies on
the upper line of the graph. Anything below the Efficient
Frontier is inefficient, as a portfolio exists with
either a higher return at the same level of risk, or
lower risk at the same level of return. An investment
advisor may help to identify which portfolios lie on
the efficient frontier for an individual with a certain
level of risk tolerance. |
| Efficient
Market Hypothesis: A theory stating
that prices of securities reflect all information available.
It assumes individual investors are aware of the same
events as the management of a corporation. |
| Endorsement: An amendment
added to a written document, particularly an agreement
between parties, such as an insurance policy, altering
its provisions. |
| Equity: Value of a property
in excess of claims or liens against it. |
| Exclusions: Risks, perils
or properties defined in the policy as not covered.
|
| Exterior
Finish: Material used to build the outer
walls of a dwelling. Also referred to as Exterior cladding.
|
| |
| |
| Face
Value: The amount of money the issuer
agrees to pay upon the maturity of a debt instrument.
|
| FIFO: The first-in, first-out
accounting method of valuing inventory. It assumes that
the first units in are the first to be sold and the
units sold are costed at the initial price. |
| Financial
Risk: Economic risk that is associated
with the use of borrowed funds (leveraged funds). |
| Fire
Hydrant: Pipe, on the side of a street
or wall of a building, with a valve for drawing water,
used by firefighters. |
| Fire
Station, Fire Hall: Building housing
firefighting equipment and firefighters. |
| Fireplace: Type of heating
used in some dwellings. |
| Fraud: An act of willful
deception and dishonesty carried out with a view to
securing some advantage, to which one is not entitled.
|
| |
| |
| General
Provisions: Portion of an insurance
policy that specifies the obligations of the insurer
and insured. |
| Glass
Insurance: Insurance against breakage
of windows in an automobile or building. |
| Growth
Stock: Stock of a company, which has
reinvestment opportunities yielding a higher return
than the market (fundamental to the growth strategy
of stock selection for a portfolio). |
| Growth
Strategy: An active portfolio management
style that seeks out stocks with future investment opportunities
with anticipated rates of return greater than other
stocks. |
| Guaranteed Investment Certificate (GIC): An
investment that offers a guaranteed rate of return for
a defined period of time. |
| |
| |
| Heating: Type of heating
in a dwelling. |
| Hit-And-Run: Refers to damage
inflicted upon a vehicle by a third party who subsequently
leaves the scene of the accident. |
| Hypothecary Creditor: In
civil law, one to whom a mortgage is given as security
for funds loaned by him or her. Roughly equivalent to
the common-law terms Mortgagee and Encumbrancer. |
| |
| |
| Income
Fund: A mutual fund that invests primarily
in fixed income securities such as bonds, mortgages
and preferred shares. The primary objective is to produce
income for investors while pursuing capital. |
| Increase
in Peril, Increase in Hazard: Circumstances
causing greater peril. |
| Increase
in Premium: Charging of a higher premium
following alterations to a contract or renewal of a
policy. |
| Indemnity: Amount paid out
as compensation for a loss incurred. |
| Index
Fund: A mutual fund that is constructed
from similar stocks with similar weights as a market
index. This may be used as an investment vehicle by
itself or it may be used as a benchmark against which
a portfolio's performance can be measured. |
| Initial
Public Offering (IPO): First sale of
stock by a private company (usually through a broker)
seeking to become publicly held. |
| Institutional Investors: Large-scale
buyers and sellers of financial instruments such as
pension funds, trust companies and mutual funds. |
| Insurance
Certifcate: Document issued by an insurance
company or broker attesting that a particular piece
of property is insured. |
| Insurance
Limits: Amount of indemnity limited
to a fixed amount according to category of property.
|
| Insured: The entity (individual
or business) whose risk of financial loss from an insured
peril is protected by the insurance policy. |
| Insured
Perils, Risks Covered: Perils identified
in the insurance contract as being covered. |
| Insurer: The company providing
the insurance coverage. |
| Interest
Rate Risk: Risk associated with fluctuations
in interest rates that have the effect of making one
financial instrument more appealing than another. |
| Issue
Date: Date on which an insurance contract
comes into force. |
| |
| |
| Jewelry: Watch, ring, necklace,
chain, bracelet, brooch. |
| |
| |
| Lay-Up: Temporary suspension
of coverage while a motor vehicle is in storage. |
| Leasehold
Improvements: Physical improvements
beyond simple maintenance or repairs that increase the
value of a property. |
| Lessor,
Landlord: Corporate or private individual
who leases property. |
| Liability
Insurance: Insurance which agrees to
indemnify the insured for sums that he or she may be
required by law to pay to third parties as damages for
bodily injury or damage to property. |
| LIFO: The last-in, first-out
accounting method of valuing a company's inventory.
It assumes that the most recent additions to inventory
are the first ones to be sold and values them at current
market prices. |
| Limited
Liability: The nature of stocks restricts
the amount of money an investor may lose to the amount
they have invested in case of company bankruptcy. Shareholders
are not liable for the actions of those within the corporation. |
| Liquidity: The ease with
which an instrument may be bought or sold at a price
that is close to its fair market price. |
| Liquidity
Risk: The risk that an individual or
firm will meet in raising funds to satisfy commitments
associated with financial instruments. It may be caused
by an inability to sell a financial asset quickly and
close enough to its actual value. |
| Load: Commissions charged
to holders of mutual fund units. |
| Loss
Frequency: High number of consecutive
losses. |
| Loss
of Use: Inability to use property that
has destroyed or damaged by an insured peril. |
| Loss
Ratio: Losses incurred expressed as
a percentage of premiums. Also referred to as Claims
ratio. |
| |
| |
| Make
and Model: Manufacturer and model names
of a motor vehicle. |
| Management Expense Ratio (MER's): The
sum of all the expenses associated with managing a mutual
fund divided by the fund's average net assets. |
| Manufacturer (Vehicle) : Name
of the manufacturer of a make of automobile. |
| Market
Capitalization: The total dollar value
of all outstanding shares of a company. |
| Market
Timer: An individual who believes he
or she can predict the direction of future movements
of the markets and exploit them for profit. |
| Market
Timing: The allocation of investment
funds between the money market (i.e. T-Bills, GICs,
savings accounts) and the stock markets. Money is invested
in money markets when stock market performance is anticipated
to be lower and in stock markets when the return on
money market products is expected to be lower. |
| Market
Value: The current price in a fair market
of financial instruments. |
| Mature
Age Discount: Reduction of premium payable
according to the age of the insured. |
| Misrepresentation: The assertion
of a material fact which the insured knowingly distorts.
|
| Misrepresentation, False Representation: Intentional
provision of false information to an insurer by an insured
when giving a notice of loss. |
| Money
Market Fund: A mutual fund constructed
of short-term, highly liquid, low-risk debt instruments. |
| Mortgage
Bond: A bond that has property pledged
as security of payment. |
| Mortgagee: The person/company
that loans money to another, taking the security of
property in exchange (such as the bank that holds the
mortgage on a house). |
| Motion
Sensor: Component of an alarm system.
|
| Movable
Property: Property owned or used by
an insured. Also known as Real estate, Goods and chattels.
|
| Mutual
Fund: A pooling of the money of a group
of investors with similar investment objectives in order
to provide increased diversification at a lower cost.
The cost of professional money management is split among
all investors in the fund |
| |
| |
| Negligence: Failure to use
the degree of care expected from a reasonable and prudent
person. |
| Net
Asset Value Per Share: The market value
of one unit of a mutual fund as quoted daily in the
papers. It is calculated as the total assets less liabilities
divided by the number of shares outstanding. |
| New
Business: New insurance policy covering
a particular risk. |
| New
Value, Replacement Value: Cash value
equivalent to what it would cost to purchase a new item
similar to one lost if it were new. In this case the
insurer applies no deduction for depreciation. |
| No
Load Fund: A mutual fund that does not
charge an investor a fee for buying or selling. |
| Number
of Units, Number of Apartments: Number
of units in a residential building. |
| |
| |
| Occasional Driver: An operator,
who is not the principal operator but will occasionally
operate the vehicle (such as a son or daughter of the
insured). |
| Outboard
Motor: Motor attached to the outside
of a boat. |
| Overinsurance: Insurance
amount that is greater than the full value of the insured
property. Also referred to as Pyramiding. |
| Overturning: Overturning
of a motor vehicle. |
| Owner: Person who owns property.
|
| Owner
Occupant, Homeowner: Person who owns
a dwelling and resides there permanently. |
| |
| |
| Paper: A term used to describe
any short-term debt instrument. |
| Passive
Strategy: The investing of funds in
a market index portfolio without attempting to find
underpriced (value) securities or growth securities.
This investment strategy reduces the management costs
associated with it, as there is little research performed
and fewer brokerage fees. |
| Pension
Plan: A formal arrangement through which
the employer, and in most cases employee, contributes
to a fund to provide the employee with a lifetime of
income at retirement. |
| Peril: The event that caused
a loss covered by the policy (such as fire, windstorm,
hailstorm). |
| Personal
Liability: A form of liability insurance
for individuals in the event that they become liable
to pay money for damage or injury caused to others.
This form does not include automobile liability. |
| Plumbing: System of pipes
for the conveyance of water or gas in a building. Also,
the work performed to install such a system. |
| Policy: Contract between
the insured and the insurer setting out the terms and
conditions of the insurance and specifying the rights
and obligations of each party. |
| Policyholder: Person in
whose name an insurance policy is written and who pays
the premiums. Not necessarily synonymous with "insured."
|
| Porch,
Veranda: Roofed gallery attached to
the exterior of a building and used for sitting out
of doors. May be open or closed. |
| Portfolio: The entire set
of stocks, bonds, real estate, and other assets an individual
possesses. |
| Power
of Attorney: Generally speaking, legal
say over the affairs of another person's assets and
the ability to execute legal documents on their behalf.
|
| Preferred
Stock: Stock in a public company that
usually has no voting rights but that generally provides
an income stream through dividends and receives priority
of payment before common stock in the event of bankruptcy.
|
| Premises: Location and/or
building insured. |
| Price-Earnings Ratio: The
ratio of a firm's stock price to its earnings per share,
which is commonly used as a valuation tool of the stock.
|
| Principal
Operator: The person who drives the
vehicle the most, usually the named insured. |
| Professional Third Party Liability Insurance: Insurance
designed to indemnify the insured for loss incurred
through legal liability resulting from actions performed
as part of the practice of a profession. |
| Proof
of Loss: A formal statement made by
a policyholder to an insurance company regarding a loss.
It is intended to give information to the insurer to
enable them to determine the extent of their liability.
|
| Property: A thing owned.
Also, the right of ownership. |
| Property
& Casualty (P & C) Insurance: Insurance
covering property (e.g. home, car). Also called General
insurance, Damage insurance, Non-life insurance. |
| Prospectus: A report that
fund companies are required by law to issue to investors
and/or people wishing to review the content of a mutual
fund before they invest in it. They normally contain
past fund performance, asset selection criteria, individual
asset weightings within each fund and expense ratios
for the funds. |
| Public
Liability: Legal obligation to pay for
damages caused to other individuals or firms. |
| |
| |
| Rate: Fixed price for a
certain coverage amount for a given period. May be expressed
in dollars, cents or as a percentage. |
| Real
Rate of Return: The rate of return adjusted
for inflation. A negative real return indicates wealth
destruction as the assets are worth less today than
yesterday. |
| Reconstruction Cost: Appraisal
enabling determination of the replacement cost of a
dwelling. |
| Refund: Repayment of a portion
of the insurance premium. |
| Reinstatement: Restoration
of insurance following lay-up. |
| Reinsurance: Placing of
a part of the insurance (i.e. a portion of the risk)
with another insurance company (the reinsurer), which
assumes the responsibility in return for a percentage
of the premium paid by the insured. |
| Reinvestment Risk: The risk
that future returns will be less than they are today
and future proceeds will have to be reinvested at the
lower rate. |
| Renewal: Automatic continuation
of an insurance contract upon payment of the premium.
|
| Rental
Value, Leasing Value: Value of rental
amounts lost following loss of an insured dwelling.
|
| Replacement Cost: The cost
to replace or repair an item without deduction for depreciation.
|
| Replacement Cost (Auto): Claim
settlement without deduction for depreciation, but not
exceeding the vehicle purchase price. |
| Replacement Value: Cash
value established for the replacement of an item according
to its current cost, without depreciation. |
| Retiring
Allowance: An amount received upon retirement
from employment in recognition of long service or, with
respect to loss of employment. |
| Return: A measure of performance
that takes into consideration the initial value of the
investments, the end value of the investments and includes
earnings from reinvesting dividends. |
| Riot: Disturbance of the
peace by a crowd of people. |
| Risk
(Insurance): An estimate of the probability
that certain perils will occur. |
| Risk
(Investment): The degree to which an
investment may lose its original value. |
| Risk
Premium: Additional rate of return offered
by assets that are risky (the return is uncertain) in
nature. The higher the risk, the higher the risk premium.
Historically the risk premium on T-Bills is less than
bonds, which is less than the risk premium on stocks.
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| Risk
Tolerance: The amount of risk an investor
is willing to bear. One who is risk averse invests in
risky assets only if the risk premium is sufficient.
One who is a risk seeker searches for investment opportunities
that are risky, even if they might produce lower returns.
One who is risk neutral considers only the expected
return on an investment and is not influenced by associated
risk factors. |
| Risk
Underwriting: Analysis, as part of an
insurability evaluation, of the circumstances surrounding
a risk for the purpose of assessing its chances of being
realized. |
| Risk-Free
Rate: A guaranteed rate of return on
an essentially risk-free investment asset (e.g. T-Bills).
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| Roof
Assembly: Covering and supporting framework
on top of a building. |
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| Salvage: The remaining value
of property after severe damage by fire or other peril.
The overall loss is reduced by the salvage value. Damaged
property may be quite saleable and some property may
be partially damaged, but repairable and then saleable.
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| Share: Represents one unit
of ownership in a corporation. |
| Short
Cord: Volume of chopped wood having
dimensions 4 ft. high by 18 or 24 in. deep by 8 ft.
long. |
| Short
Rate Cancellation: The cancellation
by the insured of a policy before its intended expiration.
The insurance company pays a return premium that is
less than the amount that actually remains unearned.
In this way the policyholder has paid a penalty for
a mid-term cancellation. |
| Slow
Combustion Stove: Means of heating a
dwelling. Sometimes referred to as Slow burning stove
or simply Stove. |
| Special
Conditions: Specific criteria of a policy
applicable to the specific situation or needs of the
insured and that determine, as the case may be, the
purpose of the insurance, the coverage conditions, and
the premium payable. Also known as Particular conditions,
Particulars, Schedule. |
| Specific
Insurance: Refers to a policy covering
items that are individually or specifically described. |
| Standard
Conditions: Conditions valid for all
insured who own the same type of policy; basic conditions
applicable to an insurance policy. |
| Standard
Deviation: A statistical measure of
the dispersion or spread of returns of an asset over
a period of time. A higher standard deviation indicates
higher volatility (risk) because actual returns vary
over a larger range than assets with lower standard
deviations. |
| Starter
Kill: Device that prevents a vehicle
engine from being started. |
| Statement
of Claim: A written statement by a plaintiff
detailing the facts that support the claim against the
defendant and the compensation sought. |
| Storage: Safekeeping of
property in a warehouse. |
| Subrogation: Process by
which an insurance company pursues rights or recovery
against a third party responsible for insured loss or
damage after it has paid for the said loss. |
| Subsidiary Coverage: Coverage
consisting of accessory elements that support other,
more important elements. |
| Surcharge: Increase in premium
amount according to perils. |
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| Tax
Deferral: The postponing of taxes until
a later date through various legal methods. |
| Tenant,
Lessee: Person who leases property from
a lessor. |
| Term
Deposit: A cash deposit for a specified
period of time at a guaranteed interest rate. |
| Term
Insurance: A form of life insurance
providing coverage for a defined period of years. It
pays out a death benefit only (money received upon the
death of the insured if within the term of the policy).
It does not have a cash or surrender value. |
| Territory: Underwriting
element of an insurance premium relative to a specific
geographical area. |
| Theft: Wrongful taking of
property without the consent of its owner. |
| Third
Party: Person other than the insurer
and the insured who is involved in a loss. |
| Third-Party Liability Automobile Insurance: Third-party
liability automobile insurance is designed to indemnify
the insured for loss incurred through legal liability
for bodily injury and damage to property of others caused
by an accident arising out of ownership or operation
of an automobile. |
| Top-Down
Management Strategy: Stock selection
is based on forecasts about the economy and sectors
within it. Equities that are expected to benefit from
the anticipated events in the economy are chosen. |
| Total
Disability: Complete loss of physical
capacities. |
| Total
Loss: Loss value greater than replacement
value of the property. |
| Trailer: Motorless vehicle
designed to be pulled. |
| Trailer
Fee: A percentage fee, based on the
value of a client's portfolio, that investment fund
companies may pay to the advisor that sold the funds.
|
| Transported Goods: Goods
transported in any type of vehicle. |
| Treasury
Bill (T-Bill): A short-term debt instrument
issued by governments with a maturity of less than one
year. |
| Trust: An asset established
by one party for the benefit of another. |
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| Umbrella
Policy: A special form of liability
policy designed to protect the policyholder for certain
unknown contingencies over and above normal coverage
and to provide a higher limit of insurance. |
| Underinsurance: Insurance
amount that is less than the full value of the property
insured. |
| Underwriting File: Underwriting
component of an automobile insurance premium; depends
on the number of years of driving experience and the
driving record. |
| Unit: One of the equal parts
into which ownership of a mutual fund is divided. |
| Universal
Life Insurance: A life insurance policy
that allows for a varying death benefit and premium
level over the term of the policy with flexible investment
options for the cash balance value of the policy. |
| Unoccupied Building: A building
with contents, but no occupant (occupant does intend
to return). |
| Utmost
Good Faith: A basic principle of any
insurance contract. Both parties to the contract are
bound to exercise good faith and do so by a full disclosure
of all information relevant to the proposed contract.
Also known by its Latin equivalent Uberrimae fidei.
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| Vacant: Status of a dwelling
whose occupants have left it with no intention of returning;
also, status of any newly built dwelling between the
time the work is completed and the time the first occupants
move in. |
| Vacant
Building: A building with no occupants
or furnishings. |
| Valuables: Articles of personal
property having great worth. |
| Value
Managers: Money managers who actively
search out stocks that are under-valued in hopes that,
once the market recognizes the true value of the stocks,
the stock value will appreciate. |
| Vandalism: Intentional destruction
or damaging of property. When motivated by malice or
revenge against the owner of the property, referred
to as Malicious mischief. |
| Vehicle
Regostration Number: Number appearing
on a vehicle licence plate. |
| Violation, Infraction: Breach
of a law or of a regulation of the Highway Safety Code.
|
| Volatility: The degree to
which instruments/markets vary in price. Lower volatility
results in less price variance. |
| Voluntary
Medical Payments: Coverage in the second
part of the home insurance contract providing for voluntary
payment to the insured, for bodily injury suffered by
a person other than the insured and for which medical
expenses are incurred. |
| Voluntary
Property Damage Payment: Coverage in
the second part of the home insurance contract providing
for voluntary reimbursement to the insured, for repair/replacement
of property other than the insured's. |
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| Watercraft, Boat: Craft
designed for navigation on water. |
| Whole
Life Insurance: A form of insurance
that provides coverage until the death of the policy
holder. It combines a death benefit with a savings plan.
The savings portion of the policy can be received before
death. |
| Windstorm: Weather phenomenon
characterized by very strong winds capable of damaging
property or dwellings. |
| Wood
Stove: Means of heating a dwelling.
|
| Wrap
Account: An account offered by investment
dealers whereby investors are charged an annual management
fee based on the market value of invested assets. |
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| Zero-Coupon Bond: A bond
that is sold below face value, offers no interest payments,
appreciates over time and distributes only one payment
at maturity. The return is the difference between the
price paid for the bond and the face value. |
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