NOTE:  All definition are from the Insurance Bureau of Canada


SALVAGE - On paying for a total loss of property, an insurance company  takes title to what remains of or what is recovered of the property. This is a  right of salvage.

SCHEDULE - 1) A comprehensive list accompanying a policy to detail the property, locations and amounts insured, and the applicable conditions. 2) In rate making, the formula applied to determine a rate.

SCHEDULE OF INSURANCE - A list of items individually covered by a policy, e.g., a list of jewels under a jewellery floater, a list of cars insured under one automobile policy or a list of buildings insured against fire.

SEASONAL RISK - 1) A risk occupied only part of the year, such as a summer dwelling. 2) In manufacturing, it may be a plant operating seasonally, such as a cannery.

SECOND PARTY - The insurance company that issues the  policy is considered the second party of the two parties needed to form a legal  contract. The first party is the policyholder.

SHORT RATE CANCELLATION - The cancellation by the insured of a policy before its natural expiration; the insurer pays a return premium which is less than the proportionate part that remains unearned.

SMOKE DAMAGE - Essentially, the devaluation by smoke, not fire, of merchandise and property. Such damage is covered by the fire policy.

SPECIAL DAMAGES- Actual loss from the natural, not the necessary, consequences of the subject of complaint; e.g., specific payments for medical bills or car repairs. In third party claims, it means the damages that may be proved with documents

SPECIAL EVENT - Specific presentations, performances or celebrations that  mark a special occasion or are used to achieve goals and objectives. Special  events usually fall outside an organization’s scope of normal operation.

STANDARD CONSTRUCTION - A term applied to a building which conforms to certain agreed upon standards of construction, such as solid brick, stone or concrete.

STANDARD FORMS - Any insurance form worded identically by all insurance companies, generally to meet the requirements of local legislation.

STANDARD LIMITS - The basic amounts of indemnity provided under a liability policy or the liability section of a policy. These limits can be increased by agreement, with an additional percentage charge.

STANDARD RISK - A person who, according to a company's underwriting  standards, is entitled to purchase insurance protection without special  restrictions.

STATEMENT OF CLAIM - A written statement by a plaintiff detailing the facts which support the claim against the defendant and the relief sought.

STATUTORY CONDITIONS - Special prescribed and standardized conditions that the Provincial Insurance Acts require to be included in fire, automobile and accident and sickness policies.

SUBROGATION - Once a company has paid a loss for which someone other than the policyholder is responsible, it may have the right to recover this loss from the guilty party. This right is called subrogation.

SUBSTANDARD INSURANCE - Insurance for those persons who do not qualify for insurance  at standard rates or terms

SURVEY - An examination of a risk to be insured, following which the inspector completes a form giving all particulars.

  • We came back from London last Thursday night. Our daughter Anna had settled in London now and very anxious about her new school life. I want to thank you for introducing Fred to us for Anna's insurance. He was super helpful (day and night) that made me feel so easy to get things going as we travel.