Glossary

The language of insurance can be quite complex and confusing. Below are some commonly used insurance terms and their meanings. Insurance professionals with whom you may come into contact should be prepared to explain these terms. If you don't understand, ask!

This information is for educational purposes only and should not be relied upon to form professional opinions on coverage issues.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

S

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.

Saskatchewan Government Insurance*

The government-run insurance company from whom all drivers in Saskatchewan must purchase mandatory or compulsory car insurance.

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.

Schedule of Property

A statement accompanying a policy specifying the various items to be insured and the corresponding amounts applying to each item. The schedule date, when required, must be before or coincident with the issue of the policy, never afterwards.

Scheduled Property Floater

An inland marine form of policy specifically insuring various individual items. Articles of unusual value, provided they are movable, may normally be written this way and insured against many hazards, often against "all risks."

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.

Section A*

See Third-party liability.

Section B*

See Accident Benefits.

Section C*

See Collision coverage.

Section D*

See Uninsured motorist coverage.

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.

Slander

The oral utterance or spreading of falsehood harmful to another's reputation. Libel is written; slander is spoken.

Smoke Damage

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

Social Host Liability (Liquor Liability)*

Potential liability for bodily injury or property damage arising out of the negligent serving or distribution of alcohol by a non-business enterprise (i.e. homeowner).

Soft Market*

The part of the insurance cycle in which there is insurance capacity and policies are sold at lower prices (see also Hard market).

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.

Special Multi-Peril Policy

This basic policy contains declarations, general provisions and definitions applicable to the four principal sections of coverage; property, liability, comprehensive crime, boiler and machinery. The particular coverage requirements for each are handled by separate forms attached to the basic contract.

Spontaneous Combustion

Self ignition of combustible material through chemical action of its parts.

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 of Care*

The degree or level of service, attention, care and protection that a person owes another person according to the law (see also Duty of care).

Standard Provisions

1) The prescribed wording of certain parts of a policy.

2) The conditions and requirements which commonly form part of contract documents.

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.

Subrogee

The party which assumes the rights of another by subrogation.

Subrogor

The party whose rights are assigned to another by subrogation.

Substandard Insurance*

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

Suit

A legal proceeding brought by one person against another.

Summons

The legal serving of notice of a lawsuit that has been filed.

Superintendent Of Insurance

The chief officer of the Government Department which regulates insurance.

Surrender

Cancellation of a policy before its normal expiry by mutual consent of insured and insurer.

Survey

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

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