Order alphabetically

AF #


It is the unexpected, sudden and involuntary event that may be the cause of damage to people or things regardless of their will.


It is the professional who is based on mathematics, statistics, the calculation of probabilities and the actuarial calculation to determine the cost of insurance premiums, quotas and reserves, in order that the amount of these amounts is sufficient for the payment of compensation and is fair to the client.

Agreement of the parties

Decision adopted by the parties regarding the conflict raised, either extrajudicially or during the processing of the indicated lawsuit, for its resolution by putting an end to it.

Risk aggravation

Decision adopted by the parties regarding the conflict raised, either extrajudicially or during the processing of the indicated lawsuit, for its resolution by putting an end to it.


Coverage, events for which the insurer will be responsible if they occur.


It is the termination of the effects of a policy, either due to the occurrence of circumstances that were contractually foreseen as determining it, by mutual agreement of the insurer and the insured or by unilateral decision of either party.


It is the person who, through the payment of the premium, is entitled to the payment of compensation as a result of a loss due to the realization of an eventuality covered by the insurance contract.


It is the company that assumes the risk coverage, previously authorized to operate as such by the Banking Superintendence.

Insurance advisor

It is the person, authorized by the Insurance Superintendency, who mediates between the person who wants to take out the insurance and the insurance company. It is who exercises the activity of intermediation promoting the conclusion of insurance contracts, advising insurable.


Sales channel. Marketing of simple insurance products through banking distribution networks.


Role of a person with a contract. Each of the persons in whose favor an insurance, pension, income or other benefit has been constituted. The beneficiary can be free of charge and for consideration. A gratuitous title is the one that is designated by mere generosity of the insured; It can be revoked at any time during its validity. An onerous title is one that is designated when the insurance has been contracted as protection of an economic interest; It can only be revoked with your consent.

contingent beneficiary

Role of a person in a contract. Person or entity appointed to receive the benefits of a product such as Life or Income Insurance, conditional on an event for which the main beneficiary loses his right.

legal beneficiary

When beneficiaries are not designated or the designation is rendered ineffective for any reason, the Spouse of the Insured in the 50% and his heirs in another half will have the quality of such.

Onerous Beneficiary

Mandatory beneficiaries for economic commitments that the Insured has acquired and whose responsibility is supported by an insurance policy in the event of death or disability. Eg mortgage loans or debts with natural persons.

Primary Beneficiary

Role of a person in a contract. Beneficiary named as the first option to receive the benefits of a product.

Secondary beneficiary

Contingent beneficiary.

Free Beneficiaries

They are those designated freely and at the will of the Insured. Normally they will be the Spouse or Partner, Children, Parents, Siblings, etc.

Contract expiration

Suspension of the effects of the guarantees contained in a contract, due to the existence of certain foreseen circumstances, such as, for example, the end of the specified duration period or non-payment of the entire insurance premium. As of this date, the policy does not generate charges again until the expiration date is lifted.

Cancellation with proportional validity

Cancellation of a contract when the client pays only the advance of the premium, therefore the contract is valid for a time proportional to the payment received. It is presented in life and health insurance. The cancellation is then recorded to start from a future date.

Contract cancellation

Termination of a contract, either at the request of the client or the Company. In capitalization, the equivalent concept is the total withdrawal of the balance by the client.

Cancellation due to non-renewal

Cause of contract cancellation. It occurs when a grace period has elapsed after its expiration, the client does not renew it.

Client portfolio

Total list of customers of a company or part of it.

pending portfolio

Set of premiums payable by customers. Applies to insurance and annuity products.

Cause of cancellation

CAUSE CONTRACT STATUS. Reason why a contract is cancelled.

Cause of loss

An event that directly caused a loss or led to a chain of events that resulted in the loss.


Document in which the insurer describes the insurance plan that covers a specific RISK of a group policy. It is assimilated to a contract, with the particularity of being linked to a parent contract or policy.

risk class

Categories under which an assessor classifies a risk based on the insurance application, statement of insurability, confidential report, medical examiner's report, and other insurability requirements.

insurance classes

Insurance was designed to cover the risks that affect people and the risks that affect assets, in a similar way there is insurance for individuals or for groups of people (collective). For each of these divisions there are different types of insurance such as life, auto, health, home and fire insurance, among others.


Each one of the conditions, provisions or stipulations of an insurance contract, through which the original conditions of the policy are extended or limited.


User of the Company's products or services.

New client

Customer whose engagement date falls within a given period.

New customer with product

Client whose date of relationship of the client with the product is included within a given period.


Each of the insurance companies that participate in a coinsurance. You must pay the leading co-insurer its share of the commissions paid.

Ceding coinsurer

Leading co-insurer.

Leading coinsurer

Coinsurance company that takes under its responsibility the administration of the business. It is responsible for issuing the policy, collecting the premiums, settling claims and paying the indemnities that the co-insurers will ultimately bear in proportion to their respective participation. It is also responsible for the payment of commissions, sales tax and withholding tax.


Article 1095 of the Commercial Code defines it as that contract "by virtue of which two or more insurers, at the request of the insured or with his prior consent, agree to distribute certain insurance among themselves."

Coinsurance is a contract through which several insurance companies decide in a certain way to join or associate with the purpose of insuring large events such as those mentioned above, this is done with the purpose of minimizing costs by the insurer because on certain occasions the economic values insured exceed the limits assessed by the insurance.

In coinsurance, the insured person or entity has the ability to choose who can insure it and in what sense, more clearly each person can choose which insurer takes care of each part of their assets; It is proper to mention that in this insurance process, since two insurers can intercede, there can also be up to eight and if necessary more.

The parties to the co-insured contract decide individually what percentage of the risk they want to cover, this is because some insurers have higher percentages to cover in any eventuality, although this distribution is usually made 50/50, however, the total percentage can be distributed as desired between the parties involved in this contract. It is good to clarify that although the distribution of risk is made by each insurer, it is not carried out if the client disagrees with this distribution.

Currently, thanks to the great utility provided by this type of insurance contracts, they can have some types of coinsurance that offer different virtues; some of these types are:

Direct coinsurance: this is the contract through which the primary insurance entity (opener) decides to cede some risks to other insurance entities; This entire process is always done informing the insured.

Internal coinsurance: this is the contract through which the primary entity assigns some risks to other entities internally, without informing the insured. It is good to clarify that in case of any loss the entity will respond for the insurance as if it were one.

Coinsurance tax: in this coinsurance contract, it is the insured who decides to which entity or entities to delegate the percentages to take care of in the event of a claim and, in turn, can accept or reject proposals made by said entities.


They are the way in which the Insurers represent or describe the commitment they acquire when selling a product, and particularly define them in terms of their Insured Value, Validity, Deductibles, Premiums

Coverage affected

Coverage subject to claim in a claim.

brokerage commission

It is the payment that the company makes to intermediaries for the sale of policies or the achievement of insurance business. It is expressed as a percentage of the value of the premium, which may correspond to predefined rules of the Plan, depending on the Type of Advisor or a particular agreement with the intermediary. Commission.


Acceptance in a contract of policyholders who come from another policy (from the same or from another company), without requiring new insurability requirements. It is common in group health and life policies.


Agreement between two parties, legally enforceable. It is each of the plans subscribed by the Company with its clients. In Insurance and Funds, it is the individual or collective policy, and the certificate In Capitalization, it is the Capitalization Title In Rents, it is the Life Annuity PolicyThroughout its life, a contract can be related to different branches, agents and executives

expired contract

Contract status. Contract that was canceled due to lack of payment (total or partial) or non-renewal after its expiration date.

canceled contract

Contract status. It implies that the obligations of the parties have ended due to one of the different causes of cancellation by the client or the Company.

Non-renewed contract

Contract status. Contract that has ended its grace period and has not been renewed or cancelled.

Non-current contract

Agreement that is in any state other than Current.

Current contract

Contract status. Contract whose effects are valid on a certain date.


advisor type. It is a partnership with legal status, linked to a commercial contract, which has a minimum capital guarantee. It is supervised by the Banking Superintendence, which since its constitution accredits its suitability.


Document that meets the business conditions under which the Company accepts the risks requested for insurance.

account holder

Person who owns a bank account that is used, for example, to deposit an income or to pay premiums for automatic discounts.

Declaration of claim

Report rendered by the insured or the beneficiary on the facts and circumstances in which the event covered by the insurance took place, as well as the damages suffered as a result thereof. These details will allow the insurer to determine its responsibility in light of the facts, and the amount of compensation under the insurance contract.


A previously agreed sum that is invariably deducted from the amount to be compensated. It can be stipulated as a fixed value, as a percentage of the loss, or as a percentage of the insured or insurable value. It is the portion that the insured must assume before the Insurance Company makes any payment of benefits. Its raison d'être is to avoid paying a large number of small indemnities that could arise in a given insurance branch.

Minimum deductible

Minimum sum stipulated for each protection or coverage, which the insured must assume before the Company becomes liable. Minimum deductible value.

mandatory deductible

Deductible set by the insurer, with two purposes: Reduce administrative costs by not attending claims whose value is small. Put pressure on the insured to avoid claims, since they will have to participate in each loss that occurs.


Reduction in the premium or some other financial incentive that does not appear in the policy, as an incentive to purchase it. Discounts include not only cash (as a percentage of the premium or an absolute value) but also personal services and items of value. Attributes:- Discount type- Percentage of the value of the premium- Total value

Commercial discounts

Discount type. It is granted with commercial criteria, that is, to achieve the sale, but not obeying a technical criterion.

portfolio days

Number of days in arrears in the payment of premiums, counted from the effective date of the contract.

Client Portfolio Days

Accumulation of the portfolio days of all the contracts in which a client is a Policyholder or First Subscriber.

risk management

Address, city and telephone number where exactly a risk is located.

portfolio status

Classification of contracts according to the status of their payments.

contract status

Classification of products owned by customers according to their current situation. In the insurance transactional environment it is known as the Policy Situation.

Policy Status

Contract status.

claim status

Condition in which a loss claim is found.

risk status

Situation of a risk within a certain contract and coverage.


It is the clause through which the insurer limits the coverage of the policy, it can be given in terms of time, place, age, amount or event.


It is the clause through which the insurer limits the coverage of the policy, it can be given in terms of time, place, age, amount or event.

Exclusion of contract

Circumstances under which an injunction or coverage is not effective. Specifies hazards, properties, locations, or losses that the contract does not pay for. In some contracts they are expressly mentioned, while in others, called Named Risk, any coverage not expressly indicated is included.

Waiver of premium payment

Clause of a contract by means of which the policyholder is exonerated from the payment of premiums permanently or for a period, due to the fulfillment of a predetermined condition.

Issuance of contract

Act of formalizing a contract.


The property or person facing a condition in which a loss is possible. Risk covered by a coverage in a policy. The word risk is generally used to designate the exposed risk.

extra prime


Claim opening date

Day on which the policy is affected by the occurrence of an accident. It is the date on which the file is opened and the reservation is generated, or on which the claim is reopened.

Claim notice date

Date on which the Company is notified of the occurrence of a loss.

Contract expiration date

Start date status of the "Caucado" status of the contract. Date from which the expiration of a contract is declared.

Contract cancellation date

Start date status of the "Cancelled" status of the contract. Date on which the policy is effectively canceled by the Company. It is the date from which the contract ends.

Investment Closing Date

Date on which the savings option in a life policy is withdrawn. It is the date of exclusion of the coverage associated with the investment.

Claim Closing Date

Date on which the claim is closed, either due to payment of the obligation, objection to the claim, withdrawal of the client or administrative closure due to real doubt of fraud or fraud.

Quotation Date

Date to which the proposal presented to the client corresponds.

Customer termination date

Date on which a person ends their last relationship with the Company in general and in each client role.

Date of disassociation of the client with the product

Date when a person ends their last relationship with each instance of the product hierarchy in general and in each customer role.

Coverage Exclusion Date

Date on which coverage for a specific risk in a policy ends. Equivalent to the date of exclusion of the coverage associated with the investment.

Contract issue date

Date a policy is issued or a title is issued. When a contract is converted or reinstated, it can have a new date, but the initial date is preserved.

Coverage End Date

Date until which coverage provided coverage.

Contract expiration date

The date on which each term of the contract ends.

Effective date of the contract

Date on which each new period of validity of a contract begins. In insurance, it is the effective date of coverage.

Risk Movement Date

It is the date of an event related to a risk within a policy, for example, increase in the insured value, exclusion of an asset, exclusion of a protection.

Date of movement of risk and coverage

It is the date of an event related to a risk within the coverage of a policy.

Claim payment date

Date on which a payment or reimbursement of a claim is made.

Claim Filing Date

Date on which the insured submits the formal claim to the Company.

Date of next contract renewal

Date of expiration of the policy and in which it must be renewed. It is useful for purposes of expiration or renewal notices to customers.

Contract cancellation registration date

Date on which the manual or automatic cancellation process of the contract is carried out.

Contract reinstatement date

Date on which a policy that had been canceled is revived or reinstated. Start date of the current state with cause of event “Rehabilitation”.

Date of loss

Date on which the accident occurred.

Application date

Date on which the insured completes and signs the application with the advice of the intermediary.

Customer Attachment Date

Date on which a person establishes their first relationship with the Company in general and in each client role.

Way to pay

Periodicity with which a payment is made.

G–L #


Event causing an insured loss. Incident coverage is generally considered to differ from accident-based coverage in that incident connotes gradual or cumulative damage regardless of the exact time or place, while accident does not. In other words, the incident can be defined as an event or repeated exposure to certain conditions, which produces an injury during the term of the policy. Depending on its magnitude, the incident can be called a catastrophe.

Increase in the insured value

Percentage increase that is applied automatically and periodically to the insured value. Periodicity can be five-yearly, annual, monthly, etc., and growth can be geometric, semi-geometric or arithmetic.


It is the insured value that the insurer recognizes to the beneficiaries of insurance when they file a claim.

Insurable interest

The person whose assets may be affected, directly or indirectly, by the realization of a risk (loss) has an insurable interest. Any interest that, in addition to being lawful, is susceptible to estimation in money is insurable.


Business advisor.

Claim settlement

Action and effect of formally adjusting a loss claim. It consists of making an inventory of the damages sustained for their valuation, taking into account the type of protection contracted and the particular, general and special conditions of the policy. It is determined as: Claimed value – Participation of the insured – Withholdings (at source, VAT, ICA) – Financial or prompt payment discounts

M–R #

Payment method

Option through which a payment can be made, either from the client to the Company (for example premiums) or from the Company to the client (for example surrender values).


It is any type of change that is made in the original conditions of the policy and that may or may not affect the value of the policy premium.

Reason for cancellation

Reason why a customer decides to cancel or not renew a plan.

Claim notification

Claim notice.

Contract number

Number assigned to each contract to uniquely identify it.

business payment

Receipt of payment of an insurance premium made by a client.

premium payment

Receipt of payment of an insurance premium made by a client.

Grace period

Period during which a contract is in force, even if the premium has not been paid or renewed.


Minimum number of days a contract is expected to last.


Product defined with a set of characteristics and specific values for its marketing.

subscription policy

Condition established by the Company for the acceptance or not of a risk under a certain coverage of an insurance plan.


INSURANCE CONTRACT. Document that implements the insurance contract. It reflects the rules that regulate the contractual relations between the parties.

Insurance policy

In short, an insurance policy is a contract between two parties in which the transfer of a risk from one party to the other is specified in exchange for a premium that must be clearly established. This is done by detailing conditions of moments and events that are covered, exclusions, maximum and minimum amounts covered, and other necessary conditions.


A problem for which an individual received medical care during a period prior to the effective date of the proposed coverage in a health policy.


Consideration that the insured agrees to pay to the insurance company, in payment of the obligation that it contracts to cover the risk, and that represents the cost of the insurance.

In products that are not insurance, the value of the capitalization quota is assimilated to the term premium.


It is the price that is agreed to be paid by the person who is transferring his risk to an insurer.

Yearly fee

Premium that is paid only once to cover a risk for twelve months.

Fractional Premium

It is the premium that, instead of being paid annually, is paid for semi-annual, quarterly or monthly periods, with an established surcharge.

pending premium

It is that premium whose amount has not yet been paid by the policyholder.

contract extension

Agreement by which the term of a contract is extended.


Person who does not have current products and therefore is a potential candidate for marketing them.


Grouping of products aimed at solving a set of related needs for the customer. For insurance, it is a modality related to risks with similar characteristics. Each branch is attached to one and not more than one company.

insurance lines

They are the way in which the different products are grouped.

Insured value range

Each one of the groups in which the insured amount reached by the coverage of a contract is classified.


Company that assumes the risk of another insurer that has partially or totally transferred or ceded it, committing to reimburse it for the losses it incurs, in the proportion in which it would have assumed such risk.


Partial or total transfer of some of its risks, made by an insurance company (cedor) to another entity (reinsurer). It is, therefore, the "insurance insurance." This operation is transparent for the client.


It is the process through which a person formally requests insurance compensation in writing from the insurer.

Claim of loss

Requirement of the insurer to pay an indemnity or benefit, in accordance with the terms and conditions stipulated in the insurance contract, made by the insured or the beneficiary due to the occurrence of an accident. The insured or the beneficiary must demonstrate the occurrence of the loss, as well as the amount of the loss, if applicable. For this reason, you must obtain at your expense, and deliver or disclose to the insurer, all the details and all information that he is entitled to demand with reference to the claim, the origin and cause of the loss, and the circumstances under which which the losses occurred or are related to the liability of the insurer or the amount of compensation.


New attempt to charge the customer through automatic debit at a financial institution, when previous attempts have not been successful.


It is the money that is returned to the client when he has presented a claim and has assumed the payment of this, it is also presented when the client cancels the policy and has paid the entire premium for the entire annuity, in the latter case the reimbursement It is made as a return of unearned premiums.

claim reimbursement

It is the value received from a reinsurer, corresponding to its participation in a claim. It constitutes income for the transferor company. The recoveries of salvage and other reimbursements are part of said reimbursements, among which are the product of subrogations to third parties.


Under the terms of most life insurance policies, the insured has the right to reinstate a lapsed (cancelled) policy, within a reasonable time after lapsing, provided satisfactory evidence of insurability is provided. This right is generally denied if the policy has been surrendered for its cash value or non-payment.

contract rehabilitation

Bring a previously canceled contract back into effect. The contract continues to retain its number but can be modified in its conditions. The issue date can be kept or changed to a new one.


It is the clause through which the insurance contract is extended for one more term, most policies have this clause as automatic renewal.


Business line. Type of insurance that, prior to the payment of a premium, guarantees the client the payment of a periodic sum (income) to some beneficiaries, while their right subsists


Role of a person in a contract. Insured or Income Beneficiary whose right is effective given that he is receiving the payment of the same at the time of the analysis.

Insurability requirement

Condition defined by the Company as necessary for the complete evaluation of the risk by the evaluator of a certain insurance plan.


Omission of information that would lead the insurance company to modify the original conditions of the insurance (extra premium, exclusion annex), to unilaterally cancel the policy or object to a claim.


In the insurance business, it is used both to mean each of the goods or persons covered by a policy coverage (exposed risk), as well as a possible event (risk of fire, theft, etc.).

Moral hazard

The effect of personal reputation, character, associates, personal living habits, and financial responsibility, other than physical health, on an individual's overall insurability

Target Risk

It is represented in the characteristics and/or circumstances of the insurable person, for this there are different procedures to evaluate as appropriate.

Subjective Risk

It is the risk that affects a person due to factors independent of their health, morality, habits and customs, normally given by the environment. An example may be the risk of kidnapping, or being extorted or threatened by criminals.

S–Z #

Current Legal Daily Minimum Wage

Current Legal Daily Minimum Wage established by the government, valid for a period that is normally one year. It is assimilated to a Type of currency.

Valid Monthly Legal Minimum Wage

Current Minimum Legal Monthly Wage established by the government, valid for a period that is normally one year. It is assimilated to a Type of currency.

If the value of the damage was fully compensated by the insurer, the salvage will be the property of the insurer.

If the value of the damage was partially compensated due to insufficient insured value or due to a deductible having been agreed, the salvage must be distributed proportionally between the insured and the insurer.

If the value of the damage was partially indemnified because it is a first loss insurance, the salvage will be the property of the insurer up to the indemnified amount.

Life insurance

Insurance in which the risk insured against is the death of a particular person, called the insured; The insurance company agrees to pay a specific sum or rent to the beneficiary upon the death of the insured, provided that it occurs within a certain term, or at any time if the contract so stipulates.

Collective Life Insurance (Group)

One form is life insurance that covers a group of people who generally have a common interest, either as employees of the same company, or as members of the same union or association, etc.

Accident rate

Indicator of the magnitude of claims with respect to production.


It is the event covered by the insurance. Occurs when the risk insured in the policy occurs and causes damage. It is the concrete manifestation of the insured risk, which produces damages guaranteed in the policy up to a certain amount. Harmful event resulting in a claim under an insurance contract and for which the insurer will have to respond based on the guarantees provided by the policy and its cause.


It is an event that means a deterioration in a person or property and that has been agreed that implies a payment of compensation.

Claim paid

Amount of the loss and the expenses associated with it (adjustment and others), for which the Company is responsible before discounting the reinsurance participation. In said amount, the participation of the co-insurers in the loss is already discounted.

pending claim

One whose economic consequences have not yet been fully compensated by the insurance company. It may be pending payment because it has already been valued by the entity; pending settlement, if its valuation is under study; or pending declaration, if it has not been notified.


Document by which a person requests coverage from an insurance company for a certain risk or risks, providing all the necessary data so that, if applicable, they accept them:


  1. a) Definition

Article 1096 of the Commercial Code defines it as follows: “The insurer that pays compensation will be subrogated, by operation of law and up to the amount of the amount, in the rights of the insured against the persons responsible for the loss. But these may oppose the insurer the same exceptions that they could assert against the injured party.

There will also be room for subrogation in the rights of the insured when the latter, as a creditor, has contracted the insurance to protect his real right to the thing insured.

  1. b) Requirements for its operation

From an analysis of the various regulations that are applicable to the figure of subrogation from the insurance contract, it is found that the requirements for it to operate are the following:

That there is a valid insurance contract.

That the insurer makes the payment of compensation.

That the payment is valid.

Surrogacy is not prohibited.

  1. c) Characteristics

Subrogation in the insurance contract has as its main characteristic that it operates by operation of law, that is, it transfers to the insurer the same right that the insured had against the third party, it is enough that the legal assumptions are met for them to be filed in head of the insurer the rights of the insured or beneficiary, but only up to the amount of compensation. If this is not the case, an unjust enrichment could be generated for the insurer.

  1. d) Limit

The subrogation cannot go beyond the amount of compensation, because it may happen that the compensation does not represent full compensation for the rights of the insured or the beneficiary, arising from the contract or from the harmful conduct attributable to the author of the damage.

Now, in those cases in which the value of the indemnity is less than the damage caused by the party responsible for the claim, because the subrogation only enables the insurer to recover up to the amount paid for it, it is clear that the surplus of the damage not covered by the insurance maintains the right of the insured person to obtain full compensation for the property damage suffered.

  1. e) Cases in which it does not operate

Article 1099 of the Commercial Code states the following: "PROHIBITION OF SUBROGATION: The insurer shall not have the right to subrogation against any of the persons whose acts or omissions give rise to liability of the insured, in accordance with the laws, nor against the deceased of the claim that is, with respect to the insured, a direct or collateral relative within the second civil degree of consanguinity, adoptive parent, adopted child or non-divorced spouse.

But this rule will have no effect if the liability comes from intent or gross negligence, or in driving, compliance and credit insurance or if it is covered by an insurance contract. In the latter case, the subrogation will be limited in its scope in accordance with the terms of said contract.

Additionally, Subrogation is prohibited in personal insurance by express mandate of article 1139 of the Commercial Code.

  1. f) Test

In order to use the actions generated by the subrogation, usually those of the ordinary process, the existence of the insurance contract must be demonstrated by submitting a copy of the respective policy or the original when it is in the possession of the insurer and, in addition, it must be proved that a payment was made, which determines the exact amount of the sum up to which the insurer was subrogated.


It is the person (natural or legal) who transfers the risks to insure a certain number of people, and is responsible for paying the premiums.


Role of a person in a contract. Natural or legal person who, acting by himself or on behalf of a third party, contracts with an insurer the transfer of risks. Contractor.


The Commercial Code in its article 1106 indicates the Transfer due to death as follows: “The transfer due to death of the insured interest, or of the thing to which the insurance is linked, will leave the contract subsisting in the name of the acquirer, to whose The charge will be the fulfillment of the pending obligations at the time of the death of the insured.

But the awardee will have a period of fifteen days counted from the date of the approving sentence of the partition to notify the insurer of the respective acquisition. In the absence of this communication, the contract is terminated.

In turn, article 1107 of the Commercial Code indicates the Transfer by act inter vivos of the insurable interest: "The transfer by act inter vivos of the insured interest or of the thing to which the insurance is linked, will automatically cause the termination of the contract, unless there is still an insurable interest held by the insured. In this case, the contract will subsist to the extent necessary to protect said interest, provided that the insured informs the insurer of this circumstance within ten days following the transfer date.

The extinction will create the obligation of the insurer to return the unearned premium.

The express consent of the insurer, generically or specifically granted, will nullify the termination of the contract referred to in the first paragraph of this article.

Finally, article 1108 establishes that the insurer shall have the right to oppose to the purchaser of the insurance all the exceptions related to the contract, opposable to the main insured in the two previously mentioned cases (Arts. 1106 and 1107).

Insurable Value

Economic value of the insurable interest. For real insurance, it is the maximum sum insured so that the insurance contract can fully fulfill its indemnity function. Cumulus analysis and exposed risks are used.

Insured value

Value that the Company undertakes to pay the client for a risk, in the event of a loss. It is the maximum limit of liability of the insurer. Some products allow the automatic increase of the insured value according to a rate agreed with the client.

Insured value reached

Insured value of a risk for a certain coverage at the date of analysis, and corresponds to the initial insured value plus the increases (by variable index or by growth percentage), or subsequent movements of the insured value.

Initial insured value of the contract

Amount of the insured value at the beginning of the term of a policy.

Initial insured value of the risk

Amount of the insured value at the beginning of the term of a risk with coverage.

Assignment value

In life, it is the value of the savings premiums plus their profits in the participation fund.


It is the period of time during which an insurance provides coverage. This is an important concept because from the effective date of a policy, the term that the client has to pay his premium begins to count.


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