Ghana » Glossary

A reinsurance contract under which the subject matter business must be ceded by the ceding company in accordance with contract terms and must be accepted by the reinsurer.

Conditions at place of work which increase the probability of injury or death.

The classification of an occupation regarding the hazard to life or disability inherent in the occupation. Many hazardous occupations require a premium loading for life insurance and disability insurance purposes.

A happening or a continuous exposure to conditions which results in injury or damage. It is broader in scope than an accident.

Set by the SA Reserve Bank, it affects the short-term borrowing and lending interest rates.

The Offshore Balanced Fund seeks a balance between optimal capital growth and stable returns. The fund manager\'s aim is to obtain a stable return in dollar terms. The fund invests in more stable markets and sectors, for example, in overseas government stocks and bonds as well as blue chip shares listed on stock exchanges in North America, Britain, Europe and Japan. Any decrease in the value of the rand against other denominations will increase the return on the underlying assets in the portfolio. It offers exposure to shares not available with an investment in South African equities

Offshore banking is somewhat different to offshore investing. Investing has to do with saving your money in a particular investment product with the purpose of growth and eventually good returns. Offshore banking, on the other hand, is a facility that offers access to overseas financial and banking services. It enables one to make purchases or payments anywhere in the world, offering an option of currencies such as pounds sterling, US dollar and the Euro.

The Offshore Equity Fund is suitable for those investors seeking the potentially excellent capital growth associated with equity funds while wanting to benefit from adverse movements in the value of the rand against other currencies. The fund manager\'s aim is not only to achieve good performance in dollar terms, but also to benefit from a possible decrease in the value of the rand. It invests in blue-chip shares listed on stock exchanges in North America, Britain, Europe and Japan. Any decrease in the value of the rand against other denominations will increase the return on the underlying assets in the portfolio. This is a rand-denominated offshore fund and you do not need permission from the South African Revenue Service to make the investment.

Investing offshore, as the name implies means taking your money outside the borders of your own country and investing it in overseas markets. The main reason for wanting to do this is to spread the risk of your investment over more than one economy. This ensures that should the South African economy experience a downward trend, at least some of your investment is stashed in another country and in another economy, thereby protecting it against the possible negative returns you may experience locally. Offshore investments can take place in one of two ways, in rands and in an offshore currency.

Failure to act when action was appropriate.

The responsibility for producing evidence to confirm assertions made. It is the duty of the insured or claimant (beneficiary under a life policy) to prove the loss took place.

Used to describe an insurance company’s facility with a reinsurer which is similar in scope to a facultative obligatory treaty.

An insurance or reinsurance year of account that is not closed or finalised. See fund accounting.

Used in the context of general equities. Mutual fund that continually creates new shares on demand. Mutual fund shareholders buy the funds at net asset value and may redeem them at any time at the prevailing market prices. Antithesis of closed-end fund.

The range of prices at which the first bids and offers are made, or the first transactions that are completed on an exchange.

The clause in an insurance policy which sets out the circumstances in which the insurer is prepared to pay claims

This is the portfolio of risky assets that every investor should invest in under the assumptions of the Capital Asset Pricing Model. Under this theory the only decision the investor needs to make is the amount he is going to lend or borrow at the risk-free rate, to suit the level of risk he is willing to take.

An option is a contract between two parties, where the one party sells the other an option to either buy or sell a given asset on specified terms. Options can be traded.

These shares have full voting rights, the rights to dividends declared and the right to share in the capital growth of the company as reflected in its share price. Most of the shares listed on the JSE are ordinary shares.

The human-to human organ transplant, from a donor to the Life Assured of one or more of the following organs: Kidney, heart, lung, liver, pancreas or bone marrow. The transplantation of all other organs, or any other tissue transplant is excluded.

The rate charged on an insurance policy without any deductions.

The rate charged on an insurance policy less acquisition costs.

Original Policy Number descriptions

The amount of premium that would have been charged for a policy if all the coverages under it were in effect for the entire policy term.

A reinsurance expression indicating that the terms underwritten by the reinsurer are on exactly the same basis as those of the ceding company on the original policy.

Share dealings outside a recognised securities exchange.

The shares of companies with a common these or activity are the target investment of these funds. The shares are found across all JSE sectors. There is no benchmark.

Non-government Bond Index.

See claims intimated but not finalised.

A term used by a ceding company to describe a treaty which protects its gross account.

Insurance exceeding the amount of the possible loss on a policy.

The amount of insurance or reinsurance exceeding the insurer’s or reinsurer’s normal capacity, inclusive of automatic reinsurance facilities.

Commission paid by the reinsurer to the ceding company as a contribution towards its acquisition and other costs. Also termed overriding commission.

An investment portfolio is termed "overweight" when it holds an above index weighting in a particular share or equity sector.

Used synonymously for net account and net retention.