Insurance Definitions

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ICC CLAUSES:   (see Institute Cargo Clauses)

INDEMNIFY:  To restore the victim of a loss, in whole or in part, by payment, repair or replacement.

INDEMNITY BOND:  A bond which indemnifies the obligee against loss which arises as a result of failure on the part of a principal to perform.

INDEPENDENT ADJUSTER:  An adjuster who works as an independent contractor, hiring himself out to insurance companies or other organizations for the investigation and settlement of claims.

INDEPENDENT CONTRACTOR:  One who agrees to perform according to a contract and who is not an employee.

INHERENT VICE:  A defect or cause of loss arising out of the nature of the goods in question.

INLAND MARINE INSURANCE:  A branch of the insurance business which developed from the insuring of shipments which did not involve ocean voyages. Exposures eligible for this form of protection are described in the nationwide definition of Marine Insurance. Such diverse properties as bridges, tunnels, jewelry, and furs can now be written under Inland Marine forms.

INSTITUTE CARGO CLAUSES:   Treaty wordings developed by the International Chamber of Commerce. There are three basic sets of these clauses (A, B and C). The A clauses cover "all risks", subject to specified exclusions. The B and C clauses cover specified "risks", subject to specified exclusions. (See actual ICC Clauses treaty wordings via "Ocean Reference" link at left.)

INSURABLE INTEREST:  A direct monetary interest in the insured property sufficient to result in monetary loss should the property be damaged or destroyed.

INSURABLE RISK:  A risk which meets most of the following requisites: (1) The loss insured against must be defined; (2) It must be accidental; (3) It must be large enough to cause hardship to the insured; (4) It must belong to a homogenous group of risks large enough to make losses predictable; (5) It must not be subject to the same loss at the same time as a large number of other risks; (6) The insurance company must be able to determine a reasonable cost for the insurance; (7) The insurance company must be able to calculate the chance of loss.

INSURANCE:  A system to protect persons, groups, or businesses against the risks of financial loss by transferring the risks to a large group who agree to share the financial losses in exchange for premium payments.

INSURED:  The person whose risk is transferred and shared; the party to an insurance agreement whom the insurer agrees to indemnify for losses, provide benefits for, or render services to.

INSURER:  The company or group offering protection through the sale of an insurance policy to an insured; the party to an insurance agreement who undertakes to indemnify for losses, provide pecuniary benefits, or render services.