June 5, 2025
Decoding the Language of Insurance Law: Latin Phrases Every Business Should Know
Insurance law is built upon foundational principles that shape the way claims, disputes, and contracts are handled.
Many of these core concepts originate from longstanding legal traditions, some of which are still referenced in their original Latin form.
Whether you’re navigating policy language, reviewing a legal brief, or discussing a case with an attorney, understanding these terms can help clarify key aspects of liability, fraud prevention, and coverage interpretation. Below, we’ve outlined several essential legal doctrines commonly cited in insurance claims, along with their Latin counterparts, to help you better interpret the legal landscape of the industry.
Uberrima fides (“Utmost good faith”) – Insurance contracts operate on the principle of utmost good faith, requiring both insurers and policyholders to be honest and transparent. If a policyholder hides a pre-existing medical condition when applying for coverage, they may be denied benefits due to violating this principle.
Ab initio (“From the beginning”) – This is used when an insurance policy is considered void due to misrepresentation or fraud by the policyholder. For example, if an applicant knowingly provides false information, the insurer may declare the policy void ab initio, meaning it was never valid from the start.
Actus reus (“Guilty act”) – In insurance fraud cases, this term may be cited to prove that a claimant committed an intentional fraudulent act, such as staging an accident or submitting falsified medical bills.
Contra proferentem (“Against the offeror”) – In disputes over ambiguous policy language, courts typically interpret unclear terms against the insurer, as they drafted the contract. For example, if an exclusion clause is vague, the benefit of the doubt may go to the policyholder.
Ex gratia (“By favor”) – Sometimes insurers make ex gratia payments, meaning they voluntarily compensate a claimant without admitting legal liability. This often happens when an insurer wants to maintain good customer relations or resolve a dispute without litigation.
Causa proxima, non remota spectatur (“The proximate cause, not the remote one, is considered”) – This principle helps courts and insurers determine the primary cause of a loss. For example, if a flood damages a building’s electrical system, leading to a fire that destroys the property, the fire—not the initial flood—may be considered the primary cause of damage.
Volenti non fit injuria (“To one who is willing, no harm is done”) – Applied in assumption of risk cases. If someone signs a waiver before engaging in skydiving or motor racing, they generally cannot sue for injuries related to the inherent dangers of the activity.
Res ipsa loquitur (“The thing speaks for itself”) – This is invoked when negligence is so obvious that no further proof is needed. For example, if a truck veers off the road and crashes into a storefront due to brake failure, the insurer may determine liability without needing excessive investigation.