A third party is any person who is not the insurer or the insured and does not participate in the legal relationship between the insurer and the insured. According to this definition, the authorized driver, passengers of the insured car cannot be considered a third party.
An earned premium is an amount of premium proportional to the period of time elapsed from the beginning of the insurance period to a certain date during the insurance period.
For example: Say, the annual premium you pay is $400. On the 6th month after the insurance period you decide to terminate the insurance contract. In that case, it turns out that your insurance was valid for 6 months and the insurer would reimburse you if necessary, so the proportionate premium for 6 months (of $200) is an earned premium.
Deductible is the amount that the insurer does not reimburse.
Unconditional deductible is the amount deducted from the insurance indemnity for each insured event. The insurer shall not pay out the insurance indemnity if the loss is less than the deductible amount;
Conditional deductible – the amount up to which the damage sustained in each insured event is not indemnified, however, if the damage exceeds the amount of the conditional deductible, the insurer will issue an insurance indemnity in full.
When an insured event occurs, if it turns out that the vehicle is insured for less than its market value, the loss will be indemnified in the proportion that exists between the sum insured and the market value.
For example, a car worth $10,000 is insured for $5,000 (i.e. 50% of the market value). If the loss is $2,000, then $1,000 (50% of $2,000) will be indemnified, and if the policyholder has purchased a product with a deductible, then the deductible amount will also be deducted from the indemnity.