Article 3. Basic Concepts

The following basic concepts shall be used in this Law:

separate subdivision — a branch of an insurer (insurance broker) in the Republic of Karakalpakstan, regions and Tashkent city;

insurance — relations to protect the interests of individuals and legal entities, related to the coverage of damage caused, the organization and use of target monetary funds for the payment of indemnities and other payments upon the occurrence of a certain event;

insurance contribution — a part of the insurance premium, paid in national or foreign currency in accordance with the terms, amounts and conditions provided for by the insurance contract;

insurance premium — an insurance fee paid by the insurant to the insurer in national or foreign currency in accordance with the procedure and terms provided for by the insurance contract;

insurance amount — a certain amount within which the insurer undertakes to pay the insurance indemnity (insurance benefit) under the insurance contract;

insurance risk — a probable event, against the occurrence of which insurance is carried out;

insurance tariff — a rate of insurance premium per unit of the insurance amount, determined taking into account the object of insurance and the nature of the insurance risk, as well as in accordance with the terms and conditions of insurance;

insurance indemnity (insurance benefit) — an amount of money paid to the insurant, the insured person (beneficiary) upon the occurrence of an insured event provided for by the insurance contract, within the insurance amount for each insured person;

type of insurance — a specific insurance service developed and provided by an insurance organization within one or more classes of insurance;

insurance activities — the activities of professional participants of the insurance market, related to the carrying out of insurance and reinsurance;

insurance value — the value of the property transferred for insurance, determined by the agreement of the parties upon the conclusion of the insurance contract, unless otherwise provided for by the legislation;

deductible — a part of the losses of the insurant, which is not indemnified by the insurer in accordance with the insurance contract;

reinsurance — full or partial insurance by the insurer (reinsurer) of the risk of payment of the insurance indemnity (insurance benefit), accepted under the insurance contract, in accordance with the reinsurance contract concluded with another insurer (reinsurer);