Abandonment is the insured giving up all rights in damaged property to the insurer in return for payment as a total loss, used mainly for constructive total losses in marine insurance.
Part or all of the death benefit paid during the life insured's lifetime when a specified event occurs, with the amount paid normally deducted from the later death benefit.
Physical harm caused by an external accidental event rather than by illness or a condition inside the body, with the exact definition set by the policy wording.
Under the POBO, an advantage covers a wide range of benefits, including gifts, loans, fees, commissions, offices, contracts, services and favours, but excludes entertainment.
The relationship in which an agent is authorised to act on behalf of a principal so as to create or affect legal relations between the principal and third parties.
Agency created by law where, in a genuine emergency and without any way of obtaining instructions in time, a person acts to protect another's property or interests.
An agreed value policy is one where the value of the subject matter is agreed when the cover starts, so a total loss is paid at that value rather than at market value at the time of loss.
Authority that a third party reasonably believes an agent has because of the principal's words or conduct, which binds the principal even if the agent has no actual authority.
The qualified actuary whom an authorised insurer carrying on long term business must appoint under the Insurance Ordinance, and who is responsible for the actuarial valuation of its long term liabilities.
An authorized insurer that appoints an insurance agent or agency to carry on regulated activities on its behalf and is responsible for the agent's conduct.
The principle of choosing investments that match the currency, term and nature of the insurer's liabilities, to reduce exchange-rate and liquidity risk.
The transfer of rights under a policy to another party. A property policy can be assigned only with the insurer's consent; a life policy can generally be assigned freely.
An attending physician's report is a report on medical history and treatment, given to the insurer by a doctor who has treated the life insured, with the life insured's authorisation.
A person other than a police officer or traffic warden who is authorised to give traffic signals that must be promptly obeyed, such as authorised personnel at a tunnel area or control area.
A policy arrangement under which an unpaid premium is automatically advanced after the grace period as an interest-bearing loan secured on the policy's cash value, keeping the policy in force.
Average is a policy condition that reduces a claim, when there is under-insurance, in proportion to the sum insured divided by the value of the property at risk.
The distribution of insurance products by banks through their branch networks and customer bases; in Hong Kong such banks must be licensed by the Insurance Authority.
A benefit illustration is a document showing a client the premiums and possible future policy benefits, with guaranteed and non-guaranteed parts shown separately.
The principle of ordinary commercial contracts that the buyer must examine the goods for themselves; the seller must not misrepresent but need not volunteer information.
A certificate that a person with a mobility problem or visual impairment can present to the driver of a specified type of vehicle to board or alight in a restricted zone, other than an expressway or a 24-hour no stopping restricted zone.
A time-rental arrangement in which a registered taxi owner hires out a taxi, charging according to the rental period or other terms agreed with the hirer.
A restraint for child passengers, which a child under eight who has not reached 1.35 metres must use when riding in a private car, including a ride-hailing vehicle.
A self-regulatory code drawn up by the Hong Kong Federation of Insurers for its member insurers, setting standards for selling to and handling claims from individual policyholders.
A conditional assignment of a policy as security for a debt, under which the assignee's interest is limited to the amount owed and ends when the debt is repaid.
A sign post whose red, yellow or green colour represents one of the three most common no-stopping periods, for reference only, as the traffic sign sets the actual period.
Something of value that each party gives in return for the other's promise; in insurance, the premium on one side and the insurer's promise to pay on the other.
The period, usually two years, during which the insurer may still challenge a policy's validity for non-disclosure or misrepresentation in the application.
Training that licensed insurance intermediaries must complete for a set number of hours in each assessment period after licensing, to keep their knowledge and ethical standards up to date.
The right of an insurer, where the same loss is also covered by other policies, to require the other insurers to share the claim in rateable proportions.
A designated area, such as the Tsing Ma or Tsing Sha Control Area, where drivers must follow the relevant legislation and instructions from authorised personnel.
One of the six functions through which an insurer monitors and controls its risks: risk management, financial control, compliance, internal audit, actuarial and intermediary management.
The period of 21 calendar days after delivery of the policy or the cooling-off notice, whichever is earlier, during which the holder of certain long-term insurance policies may cancel and get back the premium paid.
The charge regularly deducted from the policy account or unit value to pay for death cover, usually based on the life insured's age and the net amount at risk.
A benefit, usually a lump sum, paid when the life insured is diagnosed with a specified critical illness that meets the policy definition or undergoes a specified procedure.
All the support an insurer gives its customers over the life of a policy, from pre-sale enquiries and policy issue through alterations and renewals to claims and complaints.
A fare set by a fleet licensee for a pre-arranged journey, either as a booking fee on top of the metered fare or as a lump sum agreed before the journey starts.
A cycleway is a road for cyclists that motor vehicles are generally not permitted to enter, on which cyclists keep to the left and overtake only on the right.
A data subject's request for a data user to confirm whether it holds their personal data and to supply a copy, which must generally be complied with within 40 days.
The six principles in the Personal Data (Privacy) Ordinance covering collection, accuracy and retention, use, security, openness, and access and correction of personal data.
The ways a policyholder may choose to use policy dividends, such as taking cash, reducing premiums, accumulating at interest or buying extra insurance.
A common name for the accidental death benefit, reflecting that total payment on accidental death is twice the basic sum assured when the rider sum insured equals it.
An in-vehicle system that assists with driving, during which the driver must still watch the road, keep hands on the steering wheel and be ready to resume manual control.
Emergency vehicles include police vehicles, fire services vehicles, ambulances and customs and excise service vehicles, and other drivers must give way and make way for them when they are sounding sirens or displaying a flashing beacon.
Entertainment means food or drink consumed on the occasion, plus any other entertainment provided at the same time; it is not an advantage under the POBO, but excessive entertainment should still be avoided.
A policy provision stating that the policy, together with the application form, riders and endorsements forming part of it, is the whole contract between the insurer and the policyholder.
The statutory body that enforces Hong Kong's four anti-discrimination ordinances; its work includes handling complaints, investigating, conciliating and issuing codes of practice.
A form of non-proportional reinsurance in which the reinsurer pays the part of each loss, per risk or per event, above the ceding company's retention, up to an agreed limit.
Term insurance with no further premiums, bought with the policy's net cash value, with a duration that depends on that value and the life insured's age at the time.
Reasonable differentiation by an insurer between applicants according to their level of risk, based on actuarial or statistical data that it is reasonable to rely on and on other relevant factors.
A financial needs analysis is a process for understanding a client's financial position, objectives and affordability in order to assess whether a long term insurance product is suitable.
The standard the Insurance Authority uses to judge whether a person is suitable for a regulated role, covering qualifications, experience, character, integrity and financial soundness.
The fixed amount option is a settlement arrangement in which the instalment is set first and payments continue until the principal and interest are used up.
The fixed period option is a settlement arrangement in which the payment period is set first and each instalment is calculated from the proceeds and the interest rate.
A sign that a proposal or claim may involve fraud and deserves closer checking, such as a claim soon after inception or a document that shows signs of alteration.
The classes of insurance business, 1 to 17, listed in Schedule 1 to the Insurance Ordinance, including accident, sickness, property, motor, liability, credit and suretyship.
A gross premium, also called an office premium, is the amount the policyholder actually pays, made up of the net premium plus loadings for expenses, contingencies and profit.
A rider giving the policyholder the right to buy additional life cover on specified dates or life events without providing fresh evidence of insurability.
A hazard warning area is formed by warning lines and hatched marking to separate conflicting traffic or protect traffic turning right, and vehicles should not drive over or enter it.
Hazard warning lights are the four-way warning lights that must be switched on when a vehicle is stationary on an expressway or a road with a speed limit exceeding 50 km/h because of a breakdown or emergency.
An important facts statement is a document setting out key facts about a policy or application arrangement, which the client must read and sign to confirm understanding.
A policy term under which the insurer generally cannot challenge the policy's validity for non-disclosure or misrepresentation once it has been in force during the life insured's lifetime for a stated period.
A way of calculating contribution in which each policy's liability is worked out as if it were the only policy, and the loss is then shared in proportion to those amounts.
Applying the same condition or requirement to everyone where a considerably smaller proportion of a particular group can meet it, the requirement cannot be justified, and members of that group are disadvantaged.
A legally recognised financial relationship between the insured and the subject matter of insurance, under which the insured benefits from its safety and suffers from its loss. It is a precondition for an enforceable insurance contract.
The independent statutory body set up under the Insurance Ordinance that authorises and supervises insurers in Hong Kong and licenses insurance intermediaries.
An industry-established body that handles claims disputes under personal policies free of charge, whose Panel rulings bind member insurers but not the complainant.
Using deception, such as a false or exaggerated claim, a deliberately caused loss or the deliberate concealment of material facts, to obtain a benefit from an insurer that one is not entitled to.
The interest option is a settlement arrangement under which the insurer keeps the principal of the policy proceeds and pays interest to the payee at regular intervals.
The control function that manages an insurer's dealings with insurance intermediaries, including the recruitment, training, supervision and conduct of its appointed agents.
A pair of alternately flashing red lights (wig-wag), used where traffic is stopped only infrequently such as at fire station exits, requiring all approaching vehicles to stop until both lights have stopped flashing.
Income earned by the local insurance industry from providing insurance and related services to overseas clients, which helps the local balance of payments.
An irrevocable beneficiary has a vested right, so the policy owner cannot change the designation or prejudice that right without the beneficiary's consent.
A system required for taxis, comprising an in-vehicle camera, a dash camera and a Global Navigation Satellite System, which records the cabin with audio, the views outside the taxi and its location data.
An individual appointed by an authorised insurer to be responsible for one of its control functions, whose appointment needs the Insurance Authority's prior approval.
A signal used in tunnel areas, control areas and on trunk roads/expressways to show whether a driver may continue in a lane or what action must be taken.
A level premium stays the same throughout the payment period, with the excess collected in the early years going into a reserve to help meet higher mortality costs in later years.
An intermediary licensed by the Insurance Authority who carries on regulated activities on behalf of its appointing insurers, which are responsible for its acts within its authority.
A licensed platform is a licensed operator of ride-hailing services which, for this section, decides the baggage rules, whether a surcharge applies and whether animals or birds may be brought on board.
In life underwriting, a lien is an arrangement under which the death benefit is reduced by a set amount if the life insured dies within a specified period.
The classes of insurance business, A to I, listed in Schedule 1 to the Insurance Ordinance, including life and annuity, linked long term, permanent health and retirement scheme management.
A benefit, usually paid periodically under the policy terms, when the life insured needs long-term care because of a specified loss of self-care ability or severe cognitive impairment.
Hong Kong's compulsory, trust-based defined contribution retirement system established under the Mandatory Provident Fund Schemes Ordinance (Cap. 485).
An adjustment that may be made to the refund when an investment-linked assurance scheme is cancelled during the cooling-off period, reflecting changes in the value of the underlying investments.
A mobility aid is an item such as a wheelchair or crutches that helps a person move around, and it is carried free for a taxi passenger with disabilities whatever its size or position.
The process of putting criminal proceeds through a series of transactions to disguise or conceal their illegal origin and true ownership so that they appear to be legitimate funds.
A statistical table, compiled from large population data, showing the probability of a person of each age dying within a year, used as a basis for life insurance premiums and reserves.
A body funded by motor insurers that compensates road accident victims for bodily injury or death when the driver at fault had no valid insurance and the judgment goes unpaid.
A multi-cycle is a pedal vehicle restricted to signed designated areas and cycle tracks, and a child under 11 riding or steering one must be accompanied by an adult.
A length of road whose start and end are marked by traffic signs, where you must not stop during the restriction time, even to pick up or set down passengers or load or unload goods.
A non-medical limit is a ceiling set by an insurer by age and sum insured, within which a proposal can generally be underwritten on the proposal form's health information without a medical examination.
The process by which one party makes a definite proposal and the other accepts it unconditionally and communicates that acceptance, so that the parties reach agreement.
A temporary arrangement in which traffic in both directions shares one tunnel tube during regular maintenance or cleansing, with the speed limit generally lowered to 50 km/h.
An overhanging load is a load that extends beyond the vehicle body, and it is subject to overhang limits and must show a red flag or lights according to the visibility conditions.
The rule that a ride-hailing vehicle must be registered in an individual's name and may be driven to provide ride-hailing passenger services only by its registered owner.
A place with spaces marked by white road markings or road studs, where a parking sign states the class or type of vehicle and the allowed parking period.
A passenger's expression of dissatisfaction with the service, which a driver should meet by staying calm, listening patiently and avoiding any verbal argument.
Passengers who need extra care and assistance from the driver, including persons with disabilities, individuals with mobility difficulties and pregnant women.
A pedestrian priority zone is a stretch of road whose beginning and end are marked by traffic signs, and within which drivers must give way to pedestrians on the roadway.
Permitted gross vehicle weight is the maximum allowed weight of a vehicle together with its passengers, load and similar items, and exceeding it means the vehicle is overloaded.
Data relating directly or indirectly to a living individual, from which it is practicable to identify that person, and which is in a form in which access or processing is practicable.
Personal hand baggage is the only category of goods a taxi may carry, and it excludes goods of a dangerous or offensive nature and goods not securely wrapped.
The process by which an issued policy is passed to the policy holder or a nominated representative, either directly by the insurer or through an intermediary.
A test that police may request from a driver involved in a traffic accident, who has committed a moving traffic offence, or suspected of driving under the influence of drugs.
Express consent given voluntarily by the data subject and not withdrawn by notice in writing, which is needed before personal data is used for a new purpose.
A serious condition named in the policy, such as loss of sight in both eyes, that is treated as total disability whether or not the insured can still work.
The Prevention of Bribery Ordinance (Cap. 201) is Hong Kong's main anti-corruption law covering both the public and private sectors, and its section 9 targets corrupt transactions involving agents and their principals.
Permission from the principal, given beforehand or applied for and granted as soon as reasonably possible after acceptance, means neither the agent nor the giver commits a section 9 offence.
The principle that only the parties to a contract have rights and obligations under it and can sue or be sued on it, subject to exceptions for agency, assignment and statute.
The core function through which an insurer conceives, designs, prices and launches insurance products, then keeps reviewing and revising them after launch.
Insurance that covers a professional, such as an insurance broker, against liability to clients arising from negligence, errors or omissions in their professional work.
Providing funds or financial services that help in the development, acquisition, transport or use of nuclear, chemical or biological weapons and their means of delivery.
A deferred annuity policy certified by the Insurance Authority as meeting specified conditions, with premiums eligible for tax deduction up to a limit.
A territory-wide transport service for persons with disabilities who are unable to use public transport, taking them to work or school, medical appointments, or social and recreational activities.
An arrangement under which an insurer passes part of the risks it has accepted to a reinsurer, and a key factor in how much capacity a new product can offer.
A notice the insurer sends before a policy expires, setting out the renewal terms and premium and usually reminding the insured of the duty to disclose material facts.
A licensed technical representative whom a licensed insurance agency or licensed insurance broker company must appoint to make sure the firm complies with conduct requirements.
A Transport Department identifier that a ride-hailing vehicle must display in the position and manner specified by the Commissioner while providing the service, so that law enforcement officers and the public can recognise it.
A ride-hailing vehicle driving permit is the permit needed to drive a ride-hailing vehicle, and it can be temporarily suspended, made of no effect or cancelled if the holder is disqualified or the holder's full driving licence is cancelled.
The six-step guide in the Road Users' Code that tells all pedestrians how to cross, from finding a safe place to keeping watch and listening while crossing.
An object or substance thrown, deposited or left on the pavement or roadway that obstructs or endangers other road users, and which must be removed as soon as possible or, if that cannot be done immediately, warned about.
A code approved under section 109 of the Road Traffic Ordinance (Cap. 374) that sets out the rules of behaviour for using the road and advises when and how to follow them.
Salvage is whatever is left of damaged property that still has value, and it normally belongs to the insurer once the insurer has paid for a total loss.
A duplicate of the main traffic light, usually on the opposite side of the junction, which must be obeyed as if it were the main light if the main light fails.
Settlement options are ways of paying policy proceeds other than a lump sum, such as the insurer keeping the proceeds and paying interest, or paying them in instalments.
A passenger attachment on a motor cycle, without which the machine cannot carry more than one passenger, and whose fixed seat is the only place a passenger under 8 may be carried.
The amount by which an insurer's assets exceed its liabilities, which the regulator requires to stay at or above a statutory level as a buffer against adverse events.
The basic Certified Plan under the VHIS, built on uniform minimum benefit requirements that include guaranteed renewal up to age 100 and no lifetime benefit limit.
A sub-standard life is a life insured whose expected mortality is above the standard level but whom the insurer is still willing to accept on special terms.
The right of an insurer that has indemnified the insured to stand in the insured's place and use the insured's rights and remedies against third parties to recover what it has paid.
A life policy clause under which the insurer's liability is normally limited to a refund of premiums paid if the life insured dies by suicide within a specified period.
A report made by law to the Joint Financial Intelligence Unit by any person who knows or suspects that property is connected with money laundering or terrorist financing.
A taxi driver identity plate is the plate a taxi driver must display inside the vehicle when carrying passengers, so that passengers and law enforcement officers can verify his identity.
A Transport Department licence for a company registered in Hong Kong to run a fleet of existing taxis, which neither replaces taxi licences nor is required to operate a taxi business.
The Taxi Service Improvement Course is the course that a taxi driver with 10 points or more must attend and complete at his own cost within 3 months from the date of the Notice.
The Taxi-Driver-Offence Points System puts 11 taxi-driver-related offences into layers of 10, 5 and 3 points and triggers action according to the points a driver accumulates within any 2-year period.
Life insurance that pays the sum insured only if the life insured dies within a set period, with normally nothing payable on survival to the end of that period.
Directly or indirectly providing or collecting property, intending or knowing that it will be used to commit terrorist acts or by terrorists, even where the funds come from a legitimate source.
The criminal offence of disclosing information likely to prejudice an investigation, knowing or suspecting that a suspicious transaction report has been made.
The insurance company function that builds the skills staff and intermediaries need for their current work (training) and prepares them for future responsibilities (development).
The two-tier penalty system applies to the four 10-point offences, with maximum penalties of a HK$10,000 fine and 6 months' imprisonment for a first conviction and a HK$25,000 fine and 12 months' imprisonment for a subsequent conviction.
Refusing cover, increasing the premium or imposing worse terms because of a protected characteristic, without reliable data or a reasonable justification.
Long term insurance whose policy value is based on the price of notional units in investment funds, with most of the investment risk borne by the policyholder.
Life insurance that separates premiums, interest, the cost of insurance and charges, and allows the policyholder to adjust premiums and cover within the policy terms.
The positive duty on both parties to an insurance contract to disclose all material facts voluntarily, accurately and fully, whether or not they are asked.
A voluntary Hong Kong government scheme that sets benefit requirements for certified individual hospital insurance products and gives tax deductions for qualifying premiums.
A benefit added to a basic policy under which the insurer waives premiums due while the insured meets the definition of disability, and the policy stays in force.
A warning triangle is a red reflective or fluorescent sign for use only on roads with a speed limit up to 50 km/h, normally placed about 50 metres behind the obstruction.
Life insurance with no fixed term that pays the sum insured on the death of the life insured whenever it occurs, provided the policy is still in force.