We put the questions we’re most frequently asked to Martin Shaw, Chief Executive of the AFM.
Jargon buster
Financial services can be complicated. We thought it might be useful to compile a list of some of the terms frequently used with everyday explanations. Please let us know if we can add more terms.
| Bona Fide | Something done honestly or in good faith |
| Discontinue | To stop paying into a policy |
| Endorsement | Something that is added to an insurance policy document |
| Excess | This is a set amount that you would normally pay towards the cost of a claim |
| Inception Date | When cover begins on a policy |
| Material Fact | A piece of information that might affect whether you are insured and at what price. If you don’t declare a material fact when buying insurance it might affect a later claim |
| No Claims Bonus | Rewards you for not making a claim on an insurance policy. Worth adding to the cost of the insurance, especially on your car |
| Policy Conditions | Rules of the game related to your insurance |
| Policy Document | This document sets out the details of your policy and you should always store it somewhere safe |
| Premium | The payment you make to your insurance policy |
| Public Liability | Provides protection for claims made against you for injury or damage to other people or their property as a result of your negligence |
| Warranty | This is a condition that you need to comply with; otherwise any future claim may not be valid |