Insurance Terminology

Insurance Terminology (South Africa) - Guideline Only

Glossary of Insurance Terms and their Definitions – in order to help you navigate the sometimes confusing world of insurance terminology (also including forex & medical terms)

• Act of God:  Natural disasters like Tsunamis, severe hail, flooding, earthquakes and others causing damage, is commonly referred to as an 'Act of God'.
• Accident:  An event that was not planned – it was unintended and unforeseen.
• Adjustable Policy: Commonly applied within the goods in transit insurance space, where the exact value of the goods are not known in advance. A provisional premium charged initially is then adjusted at the end of the insurance period.
• All Risk Cover:  Grants cover for your possessions that you may take out of your home from time to time. This section offers cover when something happens outside of your home content insurance. Pending the value of the items and the insure, you may have to specify items exceeding a certain value. Less valuable items will be covered under your all risk not specified section.
• Alternative Risk Cover:  The use of other financial instruments other than traditional insurance or reinsurance to provide cover to risk bearing entities.
• Appointment:  Happens where a few insurers agree to insure a risk on a pre-agreed % basis. In the event of a loss, each insurer would only carry their portion percentage of the loss.
• Ask Price (Forex):  Known as the offer price. The price a trader must pay to buy the base currency.
• Assessor:  Also referred to as a loss adjuster. A professional person, acting independently or employed by the insurer to determine the value of a loss as experienced by a client.
• Assets:  These may include all your personal belongings of value such as: Vehicles, buildings, investments, shares and life policies – as an example.
• AUD:  A term to describe the Australian dollar.
• Average:  Your insurance broker must assist you with the correct insured sum for full replacement value of your assets and content. Average is a clause provided for by most insurers whereby they can reduce your claim payment if you were under-insured.
• Average Direction Limit (ADX) - Forex:  A technical tool used by Forex traders to measure the strength of a trend. It works on a 0 to 100 scale. Zero means no trend. Therefore it is the power of a trend.
• Average Limit:  A provision used in a contract to limit the amount that can be paid in a certain policy period.

• Balance of Third Party:  A reduced form of cover from comprehensive insurance. It only covers the insured for liability for injuries to passengers not covered by the Road Accident Fund (RAF) and damage caused to third parties by the insured vehicle.
• Bar Chart (Forex):  Graphic presentation of price actions in Forex. A bar consists of 4 points namely: Opening price, Closing price, the Lowest and Highest price.
• Base Currency (Forex):  In the forex market, currency units are quoted as currency pairs. In a currency quote it will always be the 1st currency appearing in a currency pair quotation (on the left), followed by the second part of the quotation, called the quote currency or the counter currency (on the right) - eg ZAR/ USD (South African Rand / US Dollar).
• Bearish Engulfing (Forex):  It may indicate the weakness in a buying trend, and pre-indicate a potential selling trend in the market. Buyers are exhausted, and sellers are likely to enter the market.
• Bear Market (Forex):  A pessimistic market outlook, often characterized by falling prices. In a bear market there are more sellers than buyers.
• Beneficiaries:  When you draft your final Will, you (as the “Testator”) may nominate individuals, organisations, or make donations to inherit through your estate in the event of your death.
• Bequest:  Through a final Will, the Testator may leave money, something of value, benefits, or assets, to a nominated party. This is often referred to as a bequest.
• Bid Price (Forex): The price at which the market is willing to buy a particular currency pair. The price a trader receives when they sell the base currency.
• Bid/Ask Spread (Forex): The difference between the bid price and the asking price.
• Binder Holder:  A third party that enters into an agreement with an insurer to conclude certain administrative functions on behalf of the insurer. Such a third party must be a registered financial service provider, underwriting manager or a non-mandated intermediary.
• Betterment:  If a client experienced a loss and the insured’s property was repaired or rebuilt, the value of the improvement in the insured’s property is commonly known as betterment.
• BOC: Bank of Canada
• BOE: Bank of England
• BOJ: Bank of Japan
• Bollinger Bands (Forex):  A technical indicator that helps to measure market volatility. Some use it to forecast upcoming market trends. It operates on 3 lines: Centre, top and bottom. The centre line connects the average prices over a period of time. The supporting lines define the band between the highs and lows across the date band selected.
• Breakouts (Forex):  A term used when the price breaks (crosses) a support or certain resistance level. Breakouts may lead to serious currency movements and increasing volatility in the markets.
• Brexit:  It refers to the referendum of June 23, 2016 – where the British residents voted to exit from the European Union.
• Broad Form Liability:  It covers businesses for legal liability arising from injury or damage to third party persons on their property during the performance of their business.
• Broker:  A broker is a specialist within the insurance industry. They must be licensed to sell certain categories of business. Insurance is a vast field, so you also get specialist brokers who only cater for certain classes of insurance. Brokers earn commission and certain fees they have to disclose to all new prospective clients.
• Broker (Forex):  Acts as an mediator between the buyers and sellers in the market. The broker executes the trader's buy and sell orders and charges the spread as a commission fee. Online Forex brokers enable individuals to participate in the market, without the necessity to act through banks.
• Buck (Forex):  Buck is a slang term used for the American Dollar.
• Bullish Engulfing (Forex):  It often indicates the weakness in a selling trend, and pre-indicate a potential buying trend in the market. Sellers are exhausted and buyers are likely to enter the market.
• Bull Market (Forex):  In a bull market there are more buyers than sellers. One can say an optimistic market.
• Buy Limit (Forex): The trader can use his software to purchase a security at a specified price. It's commonly placed below the Current Market Price (CMP). The trader aims to buy at low price and sell at a higher price.
• Buy Stop (Forex):  A pending order that allows a trader to put instructions in their trading software to purchase a security at a specified price. It's placed above the Current Market Price (CMP), if a trader expects that the price will soar further on the breakage of a certain level.
• Busines Interruption:  This cover is taken out to protect businesses for loss of income. It covers loss or damage to building, plant and equipment. It can also be included for any insured peril that may result in loss of profit or additional works, regardless if the peril leads to physical damage or for example, cyber-attacks.

• Cable (Forex):  Forex traders use the term when referring to the exchange rate of the GBP/USD (British Pound / US Dollar) currency pair.
• Candlestick Chart (Forex):  A very popular form of a chart used in Forex trading. It is gives much more detail and is more detailed than a bar chart. Built of candle shaped sticks. Green (or white) candles indicate uptrends and red (or black) candles represent downtrends. Each candle indicates the open, close, high and low prices for the specific time period being looked at.
• Capital Gains Tax:  It is the Tax that is payable on the growth achieved on assets, when they are being disposed of. This is by means of being sold, in the event of death, or being donated, for example.
• Carry Trade (Forex):  A strategy followed by Forex traders that focuses on the interest rates of the currencies traded. They buy a currency with rising interest rate, while selling a currency with falling interest rate. The profits are derived from the growing differential between the two rates.
• Cash back / Out bonus:  A benefit of certain policies where clients are rewarded for not claiming against their policies within a certain time period. If a claim is made, the benefit is normally lost.
• Central Bank:  The Governmental bank of a country whose job is to manage and run the monetary policy. It plays a critical role in maintaining the country’s currency's strength and stability.
• Channels (Forex):  Easy to use tool, mainly for new Forex traders. It defines the price movement inside a channel, helping to identify trends.
• Commercial Bank:  A financial institution that serves as an intermediary party between the depositor and borrower for the sake of earning the profit. Commercial banks follow the guidelines of their countries central bank and implement the monetary policy.
• Commercial Lines Insurance:  Insurance sold to businesses, but it is categorized under short term insurance.
• Comprehensive Cover:  Normally this covers the widest form of cover provided for through insurance policies.
• Consequential Loss:  Where a loss directly leads to another loss.
• Consumer Price Index (CPI):  The calculation used to measure the average change in the prices paid by domestic households for a basic basket of consumer goods and services. CPI is a good indicator of the level of inflation in the market. It is also often used as the basis of annual salary reviews by employers.
• Contract:  The agreement between two parties creating a legal and binding obligation.
• Contract for Difference (CFD) (Forex): A derivative type that is commonly traded in the financial market. It is also referred to as a contract between the parties (the buyer and the seller), and according to this contract, the seller is obligated to pay the difference (Current value minus Contract value) to the buyer, while in the case of a negative difference, the buyer will have to settle instead.
• Corporate Insurance:  Insurance for very large multi-national corporations. Whilst it forms part of commercial insurance, it refers to this segment.
• Cover:  Describes the protection offered by the insurance product.
• Cross Currency Pairs (Forex):  Currency pairs which do not include the US dollar, e.g. GBP/CHF (Britsh Pound and Swiss Franc).
• Cross Hair (Forex):  A helpful tool available on certain trading platforms to know the parallels of the selected point in a chart. (Date, Time & Price).
• Cross Pair (Forex):  When two currencies are used in a trade at the same time (one is bought and the other is sold).
• Currency Pair (Forex):  A currency pair is the quotation and pricing structure of the currencies traded in the forex market; the value of a currency is a rate and is determined by its comparison to another currency. The first listed currency of a currency pair is called the 'base currency', and the second currency is called the 'quote currency'.
• Current Market Price (CMP):  Also known as the 'market value', the current price is the price at which goods are currently being sold in the market.

• Damages:  A payment made or awarded to a third party, due to a loss or injury.
• Demo Account (Forex):  A free Forex trading account for beginners who want to practice with no real money transactions involved.
• Depreciation:  The amount or extent whereby the insured's property has lost value due to factors such as wear & tear and age.
• Derivatives (Forex):  An agreement between two or more parties whose value is driven by an underlying financial asset or security. It aims to mitigate the risk faced by investors in the shape of variations in forex exchange rates, bonds, stocks, indexes, and commodities.
• Disclosure:  The revealing all facts, relevant to the insurance proposal. To be truthful about the risk to be covered and all related circumstances. The contract may be declared invalid if either party made misrepresentations.
• Dollar Index (Forex):  An index that measures the value of U.S. Dollar (USD) against some peer currencies. Six currencies are used to calculate the index using weighted geometric mean: Euro (EUR), Japanese Yen (JPY), Pound Sterling (GBP), Canadian Dollar (CAD), Swedish Krona (SEK), Swiss Franc (CHF).
• Double Bottom (Forex):  A common general chart pattern that consists of two lows at relatively equal levels. It often helps to predict potential uptrends in the market.
• Double Top (Forex):  A chart pattern consisting of two peaks of more or less at equal height. A technique that may help to predict potential downtrends.
• Downtrend (Forex):  A pattern where general direction shows a downward trend. Traders often refer to this as a bear trend.
• Dual Insurance Cover:  It means the insured has two active fully paid up policies with two separate insurers at the same time. The items on risk may also be the same or with some variations.

• ECB (Forex):  The European Central Bank
• Economic Calendar (Forex):  A facility on Forex trading platforms. It provides a summary of all significant economic announcements and releases and fundamental events taking place around the world. Hence anything that might impact on the market.
• Eligible Child:  Most medical schemes and medical aids, consider an eligible child on the following criteria: An eligible dependent child, including a legally adopted child, or stepchild of the principal insured person. Thus an eligible dependent child of the principle and who is not already insured. As soon as such a child ceases to satisfy the conditions above, such a child may no longer be an eligible child. Once this happens, the child may no longer be covered through the policy.
• Eligible Spouse:  Most medical aids see the eligible spouse of the principal insured person, the person who is registered as an adult dependant. The eligible spouse may not be insured under similar cover.
• Elliot Wave (Forex):  A trading pattern that allows Forex traders to predict trends with high probability.
• Endorsement:  With an insurance policy that is a special provision to a policy, so to restrict or enhance cover.
• Enter Trade (Forex): The start of trading activity by opening a position (buying or selling a currency pair).
• Estate:  It refers to everything you own; All your assets (movable property and immovable property), as well as your liabilities (debts).
• Estate Duty:  It is a Tax payable from the estate left by a deceased person, before the estate is distributed amongst the beneficiaries. This may only apply to large estates.
• Excess:  The first amount payable by the insured with any claim submitted. The excess structures of insurers are normally communicated via the policy schedule or the policy contract. Certain insurers offer excess reducers or waivers where extra cover is bought, in order to reduce or waive the excess in the event of a claim. Some products, also voluntary excess structures. In this instance a more favourable insurance premium is obtained in exchange for a higher excess to be paid, in the event of a claim. Almost all insurers charge additional excesses – these may vary, but they are also communicated with the normal excess structures.
• Executor/Executrix:  When you (the Testator) draft your Will, you appoint a person to look after your affairs after your death. This person is referred to as the Executor (or Executrix).
• Ex Gratia Payment:  It is a goodwill payment by the insurer towards the insured. Some obligations may not have been met, so there is no obligation on the insurer to make a payment or accept liability.
• Exit Trade (Forex):  Ending trading activity by closing a position.

• Fake Outs (Forex):  A term used in Forex trading in technical analyses. A trader takes a position in anticipation of a future price movement. However the signal never develops and the asset moves in the opposite direction. The price breaks a support or resistance level, but turns back to its previous direction right after.
• Family: Most medical aids would apply the following definition of a family: The principal insured person, the eligible spouse, provided such spouse is an insured person and not a principal insured. Plus all eligible children, provided they are insured persons and the eligible extended dependants, provided they are also insured persons.
• FED (Forex):  The Federal Reserve is the central bank of USA.
• Fibonacci (Forex):  A very popular technical indicator in Forex. The indicator shows the balance of power between the sellers and buyers. With Fibonacci ratios you can foresee whether the market will be bullish or bearish. Remarkable pivots are 38.2%, 50% and 61.8%. Forex traders use Fibonacci retracements to pinpoint where to place orders for market entry, for taking profits and for stop-loss orders. The Fibonacci levels are very relevant when a market has approached or reached a major price support or resistance level.
• Fiduciary:  A Legal entity or person, who accepts the responsibility of taking care of the property or needs of another person, to the benefit of that person. The person will place their trust in the Fiduciary to be accountable and manage for that person, not for the benefit of the fiduciary, if the person receiving services becomes ill, frail, incapacitated, or dies. Fiduciary duties involve a lot of trust.
• Financial Service Provider (FSP):  If you give financial advice in South Africa, you must be registered and licensed to do so. There are different licence categories for the various segments, such as short term, life, medical, funeral and other.
• First Loss Basis:  The client and the insurer agree that the assets to be insured on the policy, is less than the actual value. In the event of a claim, the insurer will only pay the agreed first loss amount.
• Fiscal Policy:  The fundamental economic policy introduced by governments for the benefit of their own economies.
• Forex (FX):  FX is a short form of 'Foreign Exchange' for the currency market. It refers to the global decentralized market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices.
• Forward Contract (Forex):  Is a non-standardized contract and an obligation to buy or sell a particular security at a predetermined price at a specified time in the future. It helps to mitigate risks faced by investors in the shape of variations in forex exchange rates, bonds, stocks, indexes, and commodities. It's also known as a "forward outright".
• Fundamental Analysis (Forex):  Is basically looking at the economic, political and social events in an effort to determine present and future economic trends. Interpreting data and statistical reports like inflation rate, unemployment rates and latest interest rates. Forex traders monitor important dates when important data and rates will be announced.
• Futures Contract (Forex):  A type of derivative that refers to the legal contract. It is an obligation to buy or sell a particular security at a predetermined price at a specified time in the future. It helps to mitigate some of the risks faced by investors. These may be for example variations in forex exchange rates, bonds, stocks, indexes, and commodities.

• G 8:  The grouping of the most industrialized countries in the world. The countries in the G8 are: USA, Japan, England, Germany, France, Italy, Russia and Canada.
• Gaps (Forex):  The area where the price of a currency, stocks, indexes or a commodity moves sharply Bear (like), leaving no sign of trading in between candlesticks on the chart of that security. It often occurs when a sudden change in fundamentals in the market happen.
• Gross Domestic Product (GDP) (Forex):  It is the total value of all goods and services produced in the market of a country (excluding any imports). The GDP figures often helps to measure the standard of living in the market and the country as a whole. Negative figures is an indicative of a weakened economy.
• Goods in Transit (GIT):  Usually a type of insurance for goods that will be transported by road. A wide range of perils are provided for, between the despatch warehouse and the receiving warehouse.
• Go Long (Forex):  The trader decides to buy a currency pair, hoping its value will increase.
• Go Short (Forex):  The trader elects to sells a currency pair, expecting the value to will drop.
• Greenbacks (Forex & General):  Term used for the "Paper U.S. Dollar". Forex traders also use it to refer the USD trading.

• Head and Shoulders (Forex):  A relatively accurate chart pattern used for long term trading. The chart shows 3 peaks, where the middle peak is the highest, it forms the “head”. The first and third peaks are about the same height, forming the “shoulders” of the pattern. If observed, traders often go short. It can also be reversed and form an “upside down head”. In this instance the middle peak is lower than the “shoulders”. This may prompt traders to go long.
• Home Owner Insurance:  Insurance cover against multiple perils that may cause damage or loss to structures (buildings) and the permanent fixtures of a house.
• Hospital: Most medical companies in South Africa would see a hospital as an institution in the territory of RSA, or abroad, which in their opinion, meets each of the following criteria:
  • Has a diagnostic and therapeutic facility for surgical and medical diagnosis treatment;
  • Care of insured clients and sick persons by, or under the supervision of, a staff of medical practitioners;
  • Provides nursing services – preferably supervised by registered nurses or nurses with equivalent qualifications.
  • Not a mental institution;
  • Not an old age home;
  • Not a place for drug addicts or alcoholics;
  • Not a health hydro, or natural cure clinic, or similar establishment;
  • Not an institution providing long-term care for certain handicapped individuals.
• House Content Insurance:  Multiple peril type policy. Granting cover for loss or damage to the contents in a house and in its surrounding outbuildings.
• HPCSA:  The South African Medical and Dental Council - the Health Professions Council of South Africa (HPCSA).

• ICBC:  The Chinese bank for loans. It is one of the largest commercial banks in the world.
• Incident:  The policy wordings of most medical related policies or plans, would refer to an incident as follows: An accident or illness that causes an insured person to be confined to hospital, and to undergo certain medical or surgical procedures and/or operations.
• Indemnity, Limit of Indemnity:  Describes the highest possible amount an insurer would pay under a specific section of the insurance policy. Typically, with personal lines property, it would be replacement costs.
• Inflation:  When the prices of goods and services goes up in the market. The central bank of a country is normally responsible for controlling inflation through the control of interest rates and the money supply.
• Interest Rate:  The rate at which a borrower has to repay the loaner of capital. The interest rates of countries impacts on the performance in the Forex market. Rising interest rates normally causes currencies to strengthen, the reverse applies where declining interest rates may cause currencies to weaken.
• Intestate:  This is a state, when you die without leaving a valid Will. The courts can then appoint an Executor on your behalf.
• Insurable Interest:  If the insured suffers a loss of personal property that is insured, then the contracts comes into effect. There must be a legal recognisable relationship between the insured and the loss suffered.
• Insurance:  Essentially, a form of risk management to hedge against a contingent uncertain loss. The insurer underwrites the policy on the facts provided in exchange for money (premium,) paid by the policy holder to obtain insurance cover.
• Insurance Broker:  A legally licensed agent, an intermediary, who provide insurance services. This may include sourcing of insurance quotations, discussing and recommending insurance solutions and placing clients with certain insurers.
• Insured Person:  Most medical aids would see an insured, based on the following:
  • The principal insured person;
  • Eligible spouse of a principal insured person (if spouse’s cover has been granted);
  • Eligible child of a principal insured person (if dependant’s cover has been granted);
  • Eligible extended dependant (if dependant’s cover has been granted).
  Please Note: There are some requirements to qualify and remain eligible, in terms of most Medical policy wordings.
• Intrady Trading (Forex):  Forex traders may use this strategy where they open and close positions in a matter of hours on a single day.
• Inverted Hammer:  Used within the candlestick trading strategy, the inverted hammer is a bullish reversal cycle that's formed after a bearish trend in the market.

• Kiwi (Forex):  The Kiwi is the term used for the New Zealand Dollar (NZD)

• Lapse:  The ending of a contract through non-payment.
• Leverage (Forex):  Money you are allowed to "borrow" from your Forex broker to open a position. It may help traders to trade higher volumes with less money. The higher the leverage, the higher the potential for profit and the risk.
• Liability:  A claim on your assets, by a third party.
• Liabilities:  For example, in the event of your death, there may be outstanding debts, funeral costs, estate duty and taxes - these are commonly referred to as liabilities.
• Life Insurance:  These are normally products that pay out upon death or disability of an insured.
• Limit of Liability:  The maximum rand amount an insurer will pay towards one claim in terms of liability.
• Line Chart (Forex):  Line charts connects assets closing prices over a chosen period.
• Liquidity (Forex):  The more liquid a currency pair is, the less impact buy and sell actions will have on its price.
• Live Quotes (Forex):  A currency pair quote offered in real time.
• Long Term Trading (Forex):  Trading positions that last from a week up to few months. Long term trading forms part of an investing strategy. Traders usually base their trades on comprehensive analysis, high capital amounts and very low leverage.
• Loonie (Forex):  Slang term used for the Canadian Dollar (CAD).
• Loss Adjuster:  Normally an independent claims specialist who is appointed to investigate contentious claims on behalf of insurers. They establish the cause of the loss, compile a report and assess the validity of a claim. Recommendations are also made with regards to the insurers’ liability.
• Lot (Forex):  The standard trading unit that traders transact.

• MACD (Moving Average Convergence/Divergence) (Forex):  Technical indicator that measures an average of the average prices (it is the average between EMA and SMA) over different periods of time. MACD may help to determine trends.
• Majors (Forex):  The major currency pairs are those in which trading volume is highest. The major currency pairs are consists of eight currencies: EUR, GBP, AUD, NZD, USD, CAD, CHF and JPY.
• Marabuso (Forex):  A type of candlestick characterized by a full body, with no shadows.
• Margin (Forex):  The deposit required for trading at a certain value amount. The bigger the margin the higher the buying power and exposure to potential losses.
• Market Risk (Forex):  The chance for future price changes in the market's currency.
• Market Value:  The value of an asset at a specific time. What people would be prepared to pay for the asset at a given time and place.
• Material Fact:  Important information that would impact on risk acceptance or decline, or accept with specific terms.
• Mechanical Breakdown :  Provides cover for mechanical breakdown of equipment, machinery or plant on the insured’s premises, or the contractors' site. The policy will specify the perils covered, extent of cover and applicable exclusions and excesses payable.
• Medical Practioner:  A registered legally qualified medical practitioner - all of which must be registered with the South African Medical and Dental Council - the Health Professions Council of South Africa (HPCSA).
• Medical Scheme:  A Medical Scheme must be registered by the Registrar of Medical Schemes. It is a requirement in terms of the Medical Schemes Act no 131 of 1998. A contribution is paid for on a monthly basis, which are based on a set of rules. This in return, provide the insured with cover against certain illnesses or injuries.
• Misrepresentation:  A factual false statement made by one party that affected the other party’s ability or judgement in agreeing to the contract. It normally happens when the policy is taken up and the insured does not disclose certain critical facts.
• Money Management (Forex):  Smart money management controls how much of your money you risk when you enter a trade.
• Moving Averages (Forex):  A technical indicator which connects price averages over different periods of time. It may point out a possible trend's direction.

• Negligence:  If you act unlawful and not in a reasonable manner.
• New for Old:  Is a basis of calculation where the insurer compensates the insured for property lost or damaged, without applying depreciation.

• Open Market Operations: (OMO) (Forex):  Is a tool of monetary policy that refers to the buying and selling of bonds and government securities in the open market, to control the money supply in the economy.
• Order (Forex):  Is a trade execution
• Overbought (Forex):  Market conditions where excess buying occurs. It signals that the momentum is about to change in favour of the sellers.
• Oversold (Forex):  Market conditions where excess selling occurs. It signals that the momentum is about to change in favour of the buyers.

• Parabolic SAR (Forex):  Technical indicator for predicting upcoming trends. Its location compared with the market price determines whether to go long or to go short (buy or sell). Parabolic SAR (Stop and Reversal) is effective in volatile markets.
• Pending Orders (Forex):  It is an option that allows traders to place the instructions in their software to permit it to execute trades, once the specific market conditions is met. There are mainly four types: Buy Limit, Sell Limit, Buy Stop and Sell Stop.
• Peril:  A contingency that may cause losses in terms of a policy.
• Personal Accident Cover:  Insurance policy that provides compensation in the event of injuries, disability or death, caused by violent, accidental, external and visible events.
• Personal Liability Cover:  A type of insurance cover for bodily harm or injury and property of third parties by persons, legally liable to the policy holder.
• Personal Lines Insurance:  There are two components attached to short term insurance: Personal Lines and Business Insurance. The one is sold to individuals and the other is available for businesses.
• PI Cover:  Refer to Professional Indemnity (PI) Insurance (refer to entry lower down in the alphabetical list).
• Pip (Forex):  It is the smallest price unit in a price quote. The fourth number after the decimal in most price quotes. A 1 pip change is a price movement of 0.0001
• Policy Benefits:  It is a summary of all the cover the policy holder enjoys through the policy in the event of a loss or damage to property.
• Policy Holder:  An individual, business, or juristic entity that is entitled to benefits under the insurance policy.
• Policy Wording:  The contract between the insurer and the customer, that sets out the terms and conditions of the policy.
• Political Risk (PoliRisk) (Forex):  The extent of exposure to political risks that can increase governmental instability and affect investor activity and a currency's performance.
• Pound (GBP) (Forex):  Pound is the monetary unit of the United Kingdom, symbolized as £ (GBP).
• Premium:  The amount of money the policy holder needs to pay an insurer to cover the risk insured against.
• Professional Indemnity Insurance:  Also referred to as Professional Indemnity (PI) Cover. The policy offers cover to professionals who provide advice or services to customers. It covers them for legal costs or claims for damages to third parties that may arise out of an act, omission, or breach of professional duty. It would normally include the following occupations: Doctors, dentists, engineers, lawyers for example.
• Proposal:  The document that suggests the Terms and Conditions of the policy.
• Proximate Cause:  It is the event that gives rise to a loss that the policy holder is insured against.
• Psychology: It is is the scientific study of how people behave, think and feel. One of the main keys for success in Forex, is to eliminate your emotions while trading.
• Public Liability Insurance:  The policy that covers the individual, business, or juristic entity against damages it becomes liable to pay, following an incident which occurred during the course of, or in connection with the policy holders' business.

• QE (Quantitative Easing) (Forex):  An expansionary monetary policy. A central bank intends to increase the money supply in the economy by purchasing government securities and bonds. It aims to achieve economic growth.
• Quote (Counter) Currency (Forex):  It is the right hand side currency of the currency pair, in a currency quote e.g. EUR/USD.

• Rally (Forex):  A price recovery following after a period of declines.
• Ranging (Flat) Trend (Forex):  A sideways trend which represents uncertain market conditions. Neither sellers or buyers are dominant.
• Ratio-Overturn:  A form of measurement to see how many complaints handled by the Short term ombudsman were overturned in favour of the insurance consumer. Such results are made public.
• Ratio-Solvency:  The measurement of financial strength of a short term insurer. It represents shareholders’ funds as a percentage of net premium.
• RBA (Reserve Bank of Australia) (Forex):  The Central Bank of Australia.
• Recession:  A period of sustained economic contraction.
• Reinsurance:  A form of insurance taken out by an insurance company, through a reinsurer. They basically pool money for many different insurers and reinvest and manage the money. It is a form of risk management applied by insurers to claim against their reinsurance when their policy holders are hit by a large catastrophe resulting in many big claims.
• Replacement Value:  Put simply, as the value an insurer is prepared to pay for an item covered at a time of a loss.
• Representative: A person who renders financial advice on behalf a registered Financial Service Provider (FSP). Such representatives must be registered with Financial Services Board (FSB).
• Reserve Rates:  Normally part of monetary policy where commercial banks are required to keep a certain portion of their deposits with their central bank, to avoid liquidity risk.
• Resistance Level (Forex):  The upper barrier of a trend or buyers ceiling. The level at which a current uptrend is expected to stop. Where the price rise encounters “resistance”.
• Retail Sales (Forex):  A report on the sales of retail goods and merchandise in a country.
• Risk:  The potential to loose something of value. In some cases, pre-emptive action may avoid or reduce such loss.
• Risk Mitigation:  The steps taken to reduce probability, or severity of an insured loss event.
• RSI (Relative Strength Index) (Forex):  A technical indicator that works on a 0 to 100 scale. Where the area below 30 may signal a buying opportunity and the area above 70 may signal a selling opportunity.

• Salvage:  If an insurer compensates a policy holder for an item, then they are entitled to the item – if recovered or damaged. They can then sell such an item for an amount of money. This is called salvage.
• Sanction:  Sanctions refer to the actions taken by countries against other countries for political reasons. This results in a loss of business and declining appeal of related currencies.
• Scalping (Forex):  It is shhort intraday trades. Based on openings of many positions, when the earnings potential from a single position may be small, but the overall total earning potential from a lot of winning positions simultaneously is high.
• Self Insure:  Where an individual, business or juristic entity, decides to apply their own risk management. Normally money is set aside to cater for a loss when it occurs.
• Sell Limit (Forex):  A type of pending order that allows a trader to put instructions in the trading software to purchase a security at a specified price. It's placed above the current market price, if a trader expects the price will plunge back after soaring to a specific trading level. The aim is to sell at high and to buy at a lower price.
• Sell Stop (Forex):  A type of pending order that allows a trader to put instructions in trading software to purchase a security at a specified price. It's placed below the current market price. The trader expects that the price will plunge further on the breakage of a certain level.
• Sentiment Analysis (Forex):  A study to predict a crowd psychology to determine the direction of the price movement of a security.
• Shooting Star (Forex):  Forms part of the Candlestick Trading Strategy. A shooting star is a bearish reversal pattern that is formed after a bullish trend in the market. It exhibits the weakness in a buying trend and signifies a potential selling trend in the market.
• Short Term Trading (Forex):  A trading strategy focussing on short periods (day trading up to a couple of weeks only).
• Signal (Forex):  'Signal' is a Forex Market Alert. It is trading alerts coming from the market.
• SNB:  Swiss National Bank (SNB) is the central bank of Switzerland.
• Standard Wording:  It is the standard Terms and Conditions what is issued to the policy holder for a certain policy type. Wordings can be varied by means of the schedule, which is a separate document. If the insurer wants to apply pro-active risk management, they will do so through an endorsement on the schedule.
• Sterling (GBP):  Sterling is a slang term used for the British Pound (GBP).
• Stochastic (Forex):  A technical indicator that shows oversold and overbought areas. The area below 20% surface may imply oversold conditions. The area above 80% surface may imply overbought conditions. 'Stochastic' is considered as a relatively good buying and selling alerts provider.
• Stop Loss Order (Forex):  An exit trade order which automatically closes an open position at a specific price. It is specified in advanced by the trader. A Stop Loss may limit potential losses, should the market go against you.
• Subrogation:  The insurer may take over the legal rights of a policy holder in respect of a specific claim. This is called subrogation.
• Sum Insured:  The maximum amount an insurer would pay out, following a loss or damage to an insured item.
• Supply/Demand Ratio:  The difference between the supplied amounts of goods and services and the demand for them. Example: where there is demand and the supply drops, the value goes up.
• Support Level (Forex):  The bottom barrier of a trend or the “sellers' floor”. It is the level at which a current downtrend is expected to stop as the price finds “support”.
• Swaps (Forex):  Swap is a fee that is charged by a broker from the client on an overnight positions. The interest rate differential in the two currency pairs that an investor is trading
• Swing Trade (Forex):  A short term trading strategy usually lasting from a couple of days to a week. The goal of this strategy is to ride on existing market trends and use it to the maximum advantage.
• Swissie (CHF):  Swisse is a term used for the Swiss Franc (CHF).
• Symbol:  The 3 letters used to identify a country’s currency. These represent the country of origin and the name of the currency, e.g. USD (US dollar); EUR (Euro), JPY (Japanese Yen) etc.

• Take Profit Orders (Forex):  An exit trade order. It automatically closes an open position at a specific price. It is specified in advance by the trader. When the price reaches this rate, the trade closes at a predefined profit.
• Tariff:  In the case of medical related treatments, the tariff is normally the following:
  • The table published by the GAP provider made up of procedure codes as previously published by the Council for Medical Schemes.
• Technical Analysis (Forex):  The technical approach uses tools such as technical indicators, formulas and patterns on charts. This is done to predict future trends and changes in currencies. It analyses the trends and not the reasons.
• Testament:  Refer to Will (below).
• Testate:  If a person has a valid Will at the time of death.
• Testator:  The owner of a Testament or a Will.
• Treating Customers Fairly (TCF):  A regulation aimed at Financial Service Providers (FSP) and how they must deliver services to their customers. It includes aspects such as product design, promotion, advice, servicing, complaints and complaints handling.
• Treatment:  In medical terms, a form of investigation or examination by consultation or treatment by a medical practitioner. In most cases, for the purpose of treating or monitoring an insured person’s medical condition arising out of an insured incident.
• Third Party:  It may be an individual, business or juristic entity that is involved in a claim, who is not the insurer or the policy holder.
• Tied Agent:  An advisor contracted to an insurer. Unlike an independent broker, a tied agent may only provide advice on the products of the insurer that they are contracted with.
• Time Barring:  The time period specified in a short term policy, during which a claim can legally be submitted against an insurer.
• Time Frame (Forex):  Traders can choose to look at the trading charts in different time frames.
• Trading Account (Forex):  The capital available for use in trades on the online trading platform.
• Trading Platform (Forex):  Online software provided by the broker. They are used for trading transactions, executing orders and managing your account.
• Trend Line (Forex):  A basic tool for the trader's usage on the trading platform. It connects a group of price rates throughout a chosen time frame showing price lows or highs. The more points it connects, the more stable and reliable a trend.
• Total Loss: Refer to 'Write-off' below.
• Trust: It is an institution or legal entity, where your assets can be controlled and administered before they are distributed to the beneficiaries.
• Trust Company:  A legal entity that acts as fiduciary on behalf of a person or business entity for the purpose of administration, management and the eventual transfer of assets to a beneficial party. A trust company does not own the assets its customers assign to its management. It may however, assume some legal obligation to take care of assets on behalf of other parties.
• Trustee:  It is the person or entity that controls a Trust and is responsible for managing the trust assets, until they are distributed to the beneficiaries.

• Underwriting Manager (UMA):  An underwriting manager acts as an Agent for the insurer. It performs and underwriting and rating function and shares in the underwriting profits with the insurer.
• Underwriter:  The person or the entity that accepts or rejects an insurance risk.
• Underwriting:  The process followed to determine if you want to accept or decline a risk.
• Uneconomical to Repair:  An asset becomes uneconomical to repair when the cost of the repairs are very high in relation to the value of the asset – in which case the insured will be compensated in terms of the policy terms.
• Uptrend (Forex):  A trend whose general direction is up, it is also called a bull trend.

• Volatility (Forex):  It describes the level of price fluctuation in a currency pair. The greater the volatility, the greater level of uncertainty in market expectations.

• Will:  Your 'Last Will', is also known as a Testament. It is a legal document in which you indicate what should happen to your money and property when you die. In other words, a Will gives you a say, even after your death, as to how your estate should be distributed amongst the beneficiaries.
• Write-Off or Total Loss:  An asset becomes a ‘Write-off’ when it cannot be repaired, because of high costs, when it's more costly to repair than what it's worth, or it may be a safety risk to do so.