Glossary
Insolvency Proceedings (Bankruptcy)
A judicial procedure under the Commercial Act initiated against a merchant who has become insolvent or over-indebted, with the aim of satisfying creditors through liquidation of the debtor’s assets or by means of a recovery plan. In Bulgaria, a Personal Insolvency Act has been adopted, which regulates the procedure and conditions for declaring insolvency of insolvent, bona fide debtors, with the aim of fairly satisfying creditors and restoring the debtor’s financial activity.
Insurable Income
The income on which social security contributions are calculated and paid in accordance with the law.
Insurance
The assumption of risks in exchange for receiving a premium, whereby the insurer undertakes to provide protection to the insured upon the occurrence of certain events (risks) agreed in the insurance contract. The purpose of insurance is to provide financial compensation or other assistance in the event of adverse occurrences, thus safeguarding the property or personal interests of the insured persons.
Insurance
A product offered by an insurer that provides protection against specified risks. Purchasing insurance involves entering into an insurance contract and paying the premium in accordance with the terms of the contract. The insurance gives the insured or the designated third parties the right to receive compensation or other agreed benefits upon the occurrence of an insured event.
Insurance Agent
A natural person or a trader, registered and licensed under the applicable legislation, authorized to act on behalf of one or more insurers, to offer insurance products, provide information about coverage, and assist clients in concluding insurance contracts. The agent represents the insurer, not the insured or the policyholder.
Insurance Broker
A company or a sole proprietor, registered and licensed in accordance with applicable regulations, who carries out insurance intermediation on behalf of and for the account of the policyholder, insured, or beneficiary. The broker acts independently of insurers, offering products from different insurers, assisting in selecting the most appropriate coverage, and handling claims, while protecting the interests of the client.
Insurance Claim
An official request submitted to the insurer by the policyholder, beneficiary, or a third party who has suffered a loss, for the payment of an insurance sum or compensation upon the occurrence of an insured event covered by the policy. The claim must be submitted in writing and accompanied by the necessary documents and evidence proving the occurrence of the event and its consequences.
Insurance Claim Notification
A written notice that the insured submits to the insurance company to report that an insured event has occurred. This notification is usually made within a specified period after the event and includes information about the incident, the damage caused, and the affected persons.
Insurance Company
A legal entity licensed by the Financial Supervision Commission, which carries out insurance activities in accordance with the applicable legislation. It provides insurance products and assumes financial risks in exchange for receiving a premium, paying compensation or providing other agreed assistance upon the occurrence of an insured event. It may be a domestic or foreign entity operating in the country through a branch or under the rules of the European Union.
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