An agreement between insurers and credit organisations concerning the provision of replacement vehicles to uninvolved third parties and, where appropriate, the completion of repairs. Insurers agree to pay credit hire organisations (CHOS) certain fixed rates plus certain other costs for the supply of replacement cars, and CHOs agree to supply vehicles. The agreement streamlines the process of innocent third-party claims for uninsured losses and simplifies negotiations between CHOs and insurers.
Insurance Encyclopedia
ABI Genetic Testing Code of Practice
The Association of British Insurers (ABI) has agreed that its members may not request genetic tests from insurance applicants. Until November 2006, applicants could apply for up to £500,000 in life insurance and £300,000 in health insurance without disclosing the results of previous predictive genetic tests. Above those thresholds, insurers require the results of any prior tests that have been specifically approved by the Genetics and Insurance Committee. The only test that has been approved (since June 2003) is for Huntington’s disease. Other tests may be added in the future and will be listed on www.abi.org.uk.
Abinitio
This means “From the very beginning” or “starting from or based on first principles”.
ABMT
Autologous Bone Marrow Transplant (ABMT).
ABN / ABN-G / ABN-L
Advance Beneficiary Notice (ABN).
Abnormal Risk
An insurance policy that has some unfavourable feature in comparison to the average.
Abridgment
Reduce in scope, coverage, or extent.
Abrogation
To cancel or repeal by authority.
Abscond
To run away and hide, especially in order to escape the law.
Absolute assignment
An unqualified acceptance of all the terms of an offer to form a contract. The complete sale of a life assurance policy by the policy holder to the assignee, who becomes the owner as well as an assignee for value. The consideration is usually the surrender value or another agreed price, but it can also be nominal or for ‘natural love and affection,’ in which case it is referred to as a voluntary assignment. The statutory form of assignment is specified in the Policies of Assurance Act of 1867 (qv). The assignee may agree to pay future premiums and provide a satisfactory discharge for the policy proceeds.