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The insurance industry often uses certain
technical words and phrases that maybe unclear
and confusing to customers.
To enable you to fully understand the cover provided,
we have provided simple explanations for the words
used for mortgage protection insurance and income
protection insurance:
Accident – This is a sudden
event that happens by chance and cannot be expected.
Additional Cover - means 25%
additional cover over and above the combined total
of your mortgage payment, life premium and household
premium.
Administrator- means the company
through which you bought your cover. Personal
Accident only sells policies on behalf of either
British Insurance Ltd or Pinnacle plc
Benefits office - means an employment
services job centre (or any equivalent) in the
United Kingdom.
Business - means a company, profession,
trade or industry registered in the United Kingdom.
Carer's Allowance - means a state
benefit paid to you if you look after a severely
disabled person.
Ceased to trade - means the business
has permanently stopped trading, been wound up
or put into the hands of a registered insolvency
practitioner or, if the business is a partnership,
the partnership has been permanently dissolved.
Certificate - means the document
we send you that confirms the cover you hold under
the policy.
Chronic condition - means a condition
that occurs before the start date and that continues
indefinitely or cannot be cured or eradicated
and that recurs or requires treatment. This is
a medical condition that continues indefinitely
and cannot be cured. Chronic conditions are excluded
and you will not be able to claim for them.
Condition - means any illness,
injury, disease or sickness, including any related
illness, injury, disease, sickness, or associated
symptoms.
Consultant - means a suitably
qualified independent medical specialist who is
working at a recognised hospital in the United
Kingdom. It does not include you or any of your
family.
Contract worker – This
is anyone who works on a fixed term contact. This
is most important as certain restrictions apply
to contract workers.
Controlling director - means
you own more than 20% of the issued shares of
the business you work for.
Direct debit - means the written
or verbal authority you give us which allows us
to collect the premium from your Bank or Building
Society account.
Disability - means you are disabled
and you are under the care and attendance of a
doctor or consultant.
Disabled - means you have a medical
condition that stops you from doing your normal
work or any other job that you are reasonably
able to do given your experience, education and/or
training. This must be confirmed by a doctor or
consultant.
Doctor - means a doctor of medicine
who is registered with the General Medical Council
and working in the United Kingdom. It does not
include you or any of your family.
Eligible for
cover - means you meet the eligibility
requirements of the policy. These are described
on this site and detailed on the policy documentation
on the insurers site.
Employed or Employment - means
your employer deducts PAYE tax and national insurance
contributions from your gross income and your
work is of a permanent nature or you work under
a fixed term contract or sub contracting basis
and your sole source of income derives from that
contract.
End date - means the date on
which your cover under the policy ends
Exclusion period - means the
first 3 calendar months immediately after the
start date.
Existing borrower - means your
mortgage has been in force for more than 30 days
on the start date.
Family - means your husband,
wife or partner of either sex that you live with
as if married or a relative of you or of your
husband, wife, or partner.
Gross monthly income –
means your average gross earnings before deductions
in the 12 months prior to the start date of your
policy, or the date of any claim if later. If
you are self-employed, it is the average monthly
income you have declared to the Inland Revenue
on your self-assessment return.
Fixed Term Contract - means a
formal written contract to provide services or
remuneration with a business direct or another
contractor of a business for a fixed period of
time.
Household premium - means the
normal monthly cost (or monthly equivalent of
an annual charge) you pay for the buildings and/or
contents insurance on the property named on your
certificate.
Incapacity - means any medical
condition that prevents you from doing your own
job or any job that your experience, education
or training reasonably enables you to do.
Insured – This means you
the policyholder.
Lender - means the financial
institution that grants you a mortgage.
Life premium - means the normal
monthly premium you pay for the life policy or
savings plan that is intended to protect and/or
pay off your mortgage.
Monthly benefit - means the total
amount of monthly cover you have selected under
the policy. This is also the most that will be
paid out in the event of a claim (or a proportion
of the amount for split cover). Your monthly benefit
is shown on your certificate.
Monthly Premium – this
is the amount you pay each month
Mortgage - means the secured
loan you have taken out with the lender to purchase
the private residential property you live in.
Mortgage payment - means the
normal monthly repayment you make to the lender
for your mortgage.
New borrower - means your mortgage
has been in force for 30 days or less at the start
date.
Normal income - means one of
the following:
Employed - the average monthly income you have
received during the past 12 months.
Self-employed - the monthly average of the annual
income you declared to the Inland Revenue on your
self-assessment return for the previous tax year.
Normal pregnancy - means symptoms
which normally accompany pregnancy (including
multiple pregnancy) and which are generally of
a minor and/or temporary nature (such as morning
sickness or fatigue) which do not represent a
medical hazard to you or your baby, a combination
of minor symptoms or childbirth (including delivery
by caesarean section or other medically or surgically
assisted delivery which does not cause medical
complications).
Payment in lieu of notice -means
one of the following:
Any payment you receive that relates to the notice
period you should have served under your contract
of employment.
Any part of a compensation payment for loss of
office (including any part of a payment under
a compromise agreement) that relates to the notice
period you should have served under your contract
of employment.
Permanently Retired – This
means you have stopped working and do not intend
to return to work.
Period of claim - means any separate
period of unemployment or disability for which
you are receiving monthly benefit payments.
Policy - means the specific type
and level of insurance we provide under these
conditions.
Pre-existing condition - means
any medical condition for which you have received
treatment, medication or advice in the 12 month
period immediately before the start date. This
includes any treatment to monitor the condition.
Premium - means the monthly amount
you must pay for your cover under the policy.
Proposal - means the application
form that you complete for insurance under the
policy.
Proprietor - means you own (alone
or with others - except as a shareholder), the
business you work for.
Qualification period - means
the period of time that you will need to be unemployed
or disabled before you qualify for claim payments.
The qualification period options under this policy
are detailed on the documentation.
Relative - means a brother, sister
or lineal descendant.
Schedule - means the document
we send you which confirms the premiums due under
your policy.
Self-employed or Self-employment -
means you are classed as Schedule D for income
tax purposes and you are required to make Class
2 National Insurance contributions and are not
classified as employed. You will also be classed
as being self-employed if you fall into one of
the following categories:
You are a proprietor or controlling director.
You are a relative of either a proprietor or
a controlling director who is working in the same
business as you.
Single cover - means you are
the only person named on the certificate and you
alone are insured for 100% of the monthly benefit.
Split cover - means two people
are named on the certificate and both of you are
insured for a percentage of the monthly benefit.
Start date - means the date your cover
begins. The start date is shown on your certificate.
Treatment -means advice, examinations,
consultations, medications, or long term monitoring
by a doctor or consultant.
Type of cover - means one of
the following options:
Unemployment and disability cover.
Unemployment only cover.
Disability only cover.
The type of cover you have selected is shown
on your certificate.
Unemployed - means you are entirely without
work due to one of the following reasons:
Employed - your employer has
totally and permanently terminated your job due
to circumstances entirely beyond your control;
Self-employed - the business
you work for has totally and permanently ceased
to trade due to circumstances entirely beyond
your control, or the control of any co-director
or partner in the business;
or you have ceased to work to become a full-time
carer for a member of your family and are in receipt
of Carer's Allowance.
Unemployment - means you are unemployed
and you are not receiving any form of payment
or reward from your previous employment or self-employment.
United Kingdom - means Great
Britain, Northern Ireland, Channel Islands and
the Isle of Man.
We, us, or our means British
Insurance.
Work - means you are employed
or self-employed. You must also be making the
appropriate National Insurance contributions.
This means permanent employment or self-employment
for more than 16 hours a week.
You, your, or yourself - means
the person or persons named on your certificate.
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