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Average - A provision within an insurance policy which provides that if, at the time of a loss, the Sum Insured is less than the value of the property insured settlement will be reduced in proportion to the level of under-insurance
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Ex Gratia - A payment made by the insurer for which there is no provision under the terms of the policy
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Non Disclosure - The failure of the Insured party to disclose a material fact before policy inception and which may entitle the insurer to void the policy or reject the claim
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Proximate Cause - The initiating, dominant or primary cause which gives rise to the loss. The proximate cause need not be the first or last cause in a chain of events
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Subrogation - The exercise for one's own benefit of rights or remedies possessed by another against third parties. An insurance company gains subrogation rights once they have indemnified the Insured and a common law action for recovery from third parties exists in the name of the Insured
