• Assessment

    The document prepared by a Case Manager for the ISO after a complaint has been investigated.

  • Avoidance

    If a policy is avoided it means it is treated as though it never existed. This is a common law remedy available to the insurance company in certain circumstances. more

  • Deadlock

    This is when you have come to the end of the Participant's internal complaints procedure and the complaint cannot be resolved. It is at this stage that you can bring a complaint to this Office.

  • Disability

    This depends on the policy wording. It is not a medical definition but a policy definition. Please read your policy for details.

  • Duty of disclosure

    You have a duty to give the insurance company all the information it needs to know when deciding if it can offer you insurance. This duty arises when you take out the insurance and, for house, contents and vehicle insurance, at every renewal of your policy. If you do not disclose all material information, the insurance company is entitled to avoid the policy and decline to consider your claim. more

  • Endorsement

    An alteration to the standard terms and conditions of the policy, which forms part of the contract between you and the insurance company.

  • Excess

    A fixed amount you must pay when making a claim. It represents a portion of the loss which is not covered by the insurance company. The insurance company will pay the additional claim costs.

  • Ex gratia payment

    A payment made by the insurance company to you, when it does not have to do so under the terms of the policy.

  • Indemnity value

    This is the value of the item at the time of the loss. Payment of the indemnity value is designed to put you in the same financial position you were in immediately before the loss occurred. Also see Market value.

  • Insurable interest

    This refers to the fact you must own or have some other interest in the property/item which is insured under the policy.

  • Insured

    Someone who has an insurable interest in the property covered by the policy.

  • Insurer

    The insurance company providing the insurance cover.

  • Locked-in period

    The period in personal superannuation plans during which funds can only be accessed in limited circumstances.

  • Market value

    The value of an item immediately before a loss occurs, taking into account wear and tear and depreciation. Also see Indemnity value.

  • Material information

    This is any information which would affect the insurer's judgement about whether to accept a particular risk and, if so, on what terms. Examples of information an insurer regards as material include: details of traffic and criminal convictions; previous claims history; previous avoidance or cancellation of insurance by an insurer; and the applicant's medical history.

  • Maturity

    The end of the term of an endowment insurance contract.

  • Modifications

    Additions to a vehicle which alter it from the manufacturer's specifications e.g. mag wheels, bodykit.

  • Participant

    A financial service provider which belongs to the ISO scheme. It may be a company or an individual adviser.

  • Premium

    The money paid by you to the insurance company for the cover provided by the policy.

  • Proposal

    The application you complete by telephone or in writing when you arrange the insurance. It contains questions designed to obtain full information about you and what you want insured. This information enables the insurer to assess the risk involved and calculate the premium.

  • Recommendation

    If you or the Participant are not happy with the decision in an Assessment, then either of you can request a Recommendation. A Recommendation is a reconsideration of the matter by the ISO. However, a Recommendation will only be issued if new or relevant information is provided or there are proper grounds on which to do so.

  • Sum insured

    This is the maximum amount the insurance company will pay in the event of a claim.

  • Surrender value

    The amount payable to you when you surrender or cancel a life insurance policy.

  • Third party

    Any person other than you and the insurance company.