| |
| 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.
|
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| 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.
|
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| 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.
|
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| |
| 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.
|
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| |
| 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.
|
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| |
| 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.
|
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| |
| 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. |
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| |
| 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.
|
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| |
| 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. |
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| |
| Jewellery: Watch,
ring, necklace, chain, bracelet, brooch.
|
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| |
| 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.
|
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| |
| 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
|
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| |
| 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.
|
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| |
| 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.
|
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| |
| 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.
|
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| |
| 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.
|
| 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).
|
| 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.
|
| 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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