exali Glossary
Your encyclopedia of technical terms used in the insurance industry
The insurance industry is full of technical terms—from insurance policies and obligations to recourse claims. To help you keep track of everything, the exali glossary explains the main insurance terms in a simple, understandable, and practical way.
In the exali glossary, you will find not only definitions, but also practical examples, legal information, and references to the appropriate insurance coverage. This way, you always know where the risks lie—and how to protect yourself against them.
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Obligations
Obligations are certain duties that a policyholder must fulfill toward their insurance company—before, during, and after an insured event occurs. They are not directly enforceable, but they are very important: if they are violated, this can jeopardize insurance coverage or even lead to exclusion from benefits.
Obligations can be found in the General Insurance Conditions and in the Insurance Contract Act. They are intended to enable the insurer to assess the risk correctly and process claims appropriately.
Typical obligations
Before concluding the contract:
- Provide a complete and accurate description of the risk
- Answer all relevant questions in the application truthfully
During the term:
- Notify us of any changes in risk (e.g., new areas of activity)
- Pay premiums on time
- Comply with obligations to cooperate (e.g., answer questions)
In the event of a claim:
- Report the claim immediately.
- Cooperate in the investigation of the claim.
- Prevent or limit further damage (duty to mitigate damage).
Consequences of breaching obligations
Anyone who breaches an obligation—for example, by reporting a claim too late or withholding important information—risks losing their insurance coverage. The consequences depend on whether the breach was simply negligent, grossly negligent, or intentional. In the case of intent, the insurer can refuse to pay benefits altogether.
Good to know: At exali, claims are also covered in cases of gross negligence—provided there was no intent. This applies, for example, to late reporting or an unintentional breach of duty.
Coverage from exali
exali's professional liability insurance is designed so that even minor omissions (e.g., late reporting of a claim) do not result in a blanket exclusion. exali focuses on transparency, simple communication, and customer-friendly claims processing.
Term: Obligations
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