The clause in a standard fire policy on buildings that brings outbuildings and the like within the scope of the cover.
Insurance Encyclopedia
Anniversary
See: anniversary date.
Anniversary date
1. Start of a benefit year for an insured subscriber group; date on which a policy was issued. 2. Date an employee begins a new year of employment. Also called anniversary or policy anniversary.
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The anniversary of the original date of issue of a policy as shown in the declarations.
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US: In policies with a term that exceeds 1 year, the anniversary of the policy inception date. For 1-year policies, this term can also be used to refer to the policy’s renewal date.
Anniversary Reinsurance
This is the date for renewal of a reinsurance contract whether the contract actually expires or is continuous. The date is usually twelve months from the effective date of the contract. In provisions dealing with run off of contracts the anniversary date is that of the underlying policies and not the reinsurance contract.
Announcement material
Brochures, bulletins, memos, and advertisements used to solicit, enroll, and explain an insurance program.
Annual accounting
The reporting of syndicate results on a calendar year basis, with profit taking being restricted to earned premiums.
Annual aggregate deductible
A deductible applied annually to the total amount paid in claims during a policy period. Claims are generally subject to a per-occurrence deductible the aggregate is the limit beyond which no further deductibles are applied.
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UK: A nonproportional reinsurance provision stipulating that the reinsured will retain, in addition to its retention per risk or per occurrence, an annual aggregate amount that would otherwise be recoverable from the reinsurer. The annual aggregate deductible is usually expressed as an amount or a percentage of the reinsured’s subject premium for the period.
Annual aggregate limit
The yearly maximum that a policy will cover, regardless of how many claims are made.
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Maximum amount payable under an Insurance Policy for all losses occurring within a particular calendar or fiscal year.
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See: Annual Aggregate Deductible.
Annual basis
accounting for general insurance business whereby a result is determined at the end of the accounting period reflecting the profit or loss from providing insurance cover in that period (compare with fund basis).
Annual bid bond service
An arrangement whereby a contractor pays a premium once a year and in return gets all or a certain number of bid bonds and consents of surety free of charge.