An unqualified acceptance of all the terms of an offer to form a contract. The complete sale of a life assurance policy by the policy holder to the assignee, who becomes the owner as well as an assignee for value. The consideration is usually the surrender value or another agreed price, but it can also be nominal or for ‘natural love and affection,’ in which case it is referred to as a voluntary assignment. The statutory form of assignment is specified in the Policies of Assurance Act of 1867 (qv). The assignee may agree to pay future premiums and provide a satisfactory discharge for the policy proceeds.
Insurance Encyclopedia
Absolute Beneficiary
A beneficiary who cannot be changed without his express permission.
See Also “Straight petition in bankruptcy.”
Absolute Liability
A legal doctrine that states that one can be held liable even if negligence has not been proven, as in the case of worker’s compensation.
Liability that is triggered automatically when an egregious activity is performed, when the performance of an act is so dangerous that it is enough to trigger liability regardless of the degree of negligence. e.g:
- Triggering explosives
- Sending workers aloft for construction or repair at great heights.
Also called strict liability.
Absolute Negligence for Negligence (Degrees and Defenses available to the Defendant)
This concept of negligence holds that one party is negligent regardless of the actions of the injured party. An employer, for example, is held absolutely liable under the Employees Compensation Act if an employee is injured by an act “arising out of and in the course of employment.”
Absolute net rate
A rate quoted by an insurer to a broker, which makes no allowance for commission. The broker charges his client a fee.
In extended warranty insurance, absolute net rates are frequently quoted.
Absolute net retention
After deducting all reinsurance recoveries, the amount of a loss that the reinsured retains net for its own account. A reinsurer may compel the reinsured to keep a minimum amount so that subsequent reinsurance purchases do not leave the reinsured with a purely nominal interest.
Absolute Ownership
Absolute ownership exists when the insured’s interest or explicit right or possession is free of limitations, qualifications, or restrictions and cannot be taken away from them without their consent.
Absolve
To pronounce free from guilt or blame.
Absorb
Taking in and incorporating costs to claims, absorbing premium loading to the basic rate and thus quoting the net amount arrived at rate, and so on.
Abstainers Insurance
The insurance of total abstainers from alcoholic liquids on terms more favourable than those available to the general public in health and motor insurance.