Phrase inserted in initial form on a slip when the insurer does not know whether the proposer will accept the insurer’s terms and requires the proposer’s confirmation which must be given without delay if the insurance is to attach.
Insurance Encyclopedia
Subject approval no risk (SAPNR)
A phrase used by an underwriter when he feels that the proposer may not accept the terms indicated on the slip. The effect is that the proposer’s confirmation of acceptance is required promptly before the risk can attach.
Subject business
A shorthand way of saying “business of the class, size, and limitations” covered under a reinsurance agreement.
Subject matter of Insurance
The subject matter of insurance may be any property of intrinsic value or any event the happening of which will cause the loss of a legal right or the creation of a legal liability. Thus, in fire insurance, the subject matter may be a house or a factory; in accident insurance, one’s eye or limbs or one’s liability for bodily injuries to, or damage to the property of a third party and in marine insurance a ship, its cargo, the freight at risk or the ship owner’s liability to third parties. Insurance is operative not in respect of the subject matter itself but in respect of the interest of the insured in the event or property concerned and it is this interest which is the subject matter of the contract. It is the pecuniary interest of the insured in the property exposed to peril that is really insured. Therefore, while the subject matter of insurance may be property life or liability the subject matter of contract is the insurable interest therein.
Subject Premium
REINSURACNE: A cedant’s premium (written or earned) to which the reinsurance premium rate is applied to calculate the reinsurance premium. Often, subject premium is gross/net written premium income (GNWPI) or gross/net earned premium income (GNEPI), where the term “gross/net” means gross before deducting reinsurance premiums for the reinsurance agreement under consideration; but net after all other adjustments, e.g., cancellations, refunds, or other reinsurance. Normally, subject premium refers to premium on subject business. Also, known as base premium.
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A cedant’s premiums (written or earned) to which the reinsurance premium rate is applied to calculate the reinsurance premium. Often, subject premium is gross/net written premium income (GNWPI) or gross/net earned premium income (GNEPI), where the term “gross/net” means gross before deducting reinsurance premiums for the reinsurance agreement under consideration, but net after all other adjustments, e.g., cancellations, refunds, or other reinsurance. Normally, subject premium refers to premium on subject business. Also know as base premium.
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REINSURACNE: See: Base Premium, Premium Base, Underlying Premium.
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UK: See: Base Premium.
Subject premium (Reinsurance)
The ceding insurer’s premium upon which the reinsurance premium is based. This is done by applying the reinsurance factor to the subject premium.
Subject to average
A phrase against an item or sum insured to indicate that in the event of under-insurance average will apply.
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A Provision in a non-marine property insurance that if at the time of a loss the value of the insured property is greater than the sum insured the insurer’s liability for the loss will be reduced in proportion to the under-insurance.
Subject to survey
A phrase to indicate that the insurer’s acceptance of a risk is provisional pending completion of a survey by the office’s fire surveyor.
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Phrase used to signify provisional acceptance of a fire insurance pending inspection by a fire insurance surveyor whose report will be required to determine the rates and provisos to be offered.
Subject-matter of the insurance
This is the object, property or potential liability described in the policy and to which the insured must be so related as to have an insurable interest. For example, the subject-matter of marine insurance is the actual vessel or cargo. Compare with subject-matter of the insurance contract.
Subject-matter of the insurance contract
This is the insured’s interest in the subject-matter of the insurance. The insurer cannot guarantee to restore the goods or cancel a liability but they can protect the insured’s interest against financial loss.