Glossary
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.
Insurance Contract
An agreement concluded between an insurer and a policyholder when purchasing an insurance policy, under which the insurer undertakes to provide protection against specified risks, and the insured or policyholder pays the agreed premium. A contract concluded when purchasing an insurance policy between the consumer and the insurer.
Insurance Contributions
Monthly monetary payments made by employees and/or their employers into the social and health insurance system. They fund pensions, unemployment benefits, maternity or temporary disability allowances, healthcare, and other social payments. The amount and distribution of social security contributions are determined by law and depend on income, the type of employment relationship, and the insurance risk. Social security contributions ensure access to social protection in certain events, such as illness, old age, or unemployment. Contributions can be compulsory (e.g. state social insurance, supplementary compulsory pension insurance, health insurance) or voluntary (e.g. voluntary pension insurance).
Insurance Coverage
The scope of rights and obligations arising from the insurance contract, under which the insurer undertakes to pay compensation or the sum insured upon the occurrence of certain events (risks), within the agreed terms, limits, periods, and exclusions. It encompasses the covered risks, territorial and temporal scope, amounts and liability limits, as well as the methods and conditions for making claims.
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