An agreement between a hull underwriter and the assured ship owner, whereby the underwriter is prepared to pay a compromised settlement on a total loss basis because, although, the estimated cost of repairs does not justify a constructive total loss, repairing the ship would be an uneconomical proposition in view of its market value and the high cost of repairing the damage. The settlement, usually, allows the assured to retain the wreck. Refer: “Compromised total loss:.
Insurance Encyclopedia
Arranged total loss/comprised total loss
Marine term describing a settlement agreed between the insurer and the insured where the cost of carrying out repairs is uneconomical nothwithstanding that the cost is less than the full insured value. When appropriate the principle is also adopted in other forms of property insurance.
Arranging deals in investments
A regulated activity order which means making arrangements for another person (as principal or agent) to buy, sell, subscribe for or underwrite a particular investment which is: a designated investment, funeral plan contract, underwriting capacity of a Lloyd’s syndicate, a pure protection contract, general insurance contract or rights to or interests in particular investment categories.
Arranging insurance
Defined in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 as ‘arranging for a person to enter a particular insurance contract with an insurer [and] making arrangements with a view to another person, who takes part in these arrangements, buying an unspecified insurance contract’. ‘Arranging insurance’ is distinguished from introducing insurance. The FSA decides case by case what constitutes ‘introducing? Those who arrange insurance will be regulated by the FSA in 2005. See INTRODUCER APPOINTED REPRESENTATIVES.
Arrears
Status of an insurance policy on which the monthly premiums have not been paid by a subscriber or member and are past due but which has a grace period that has not expired.
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Overdue premiums.
Arrest Bond
Refer: “Bond, Arrest Bond.”
Arrestee
A person in custody whose release may be secured by posting bail.
Arrests, restraints and detainments
Arrests, restraints and detainments of all kings, princes and people, of what nation, condition, or quality whatsoever’ are defined in the Rule for Construction of the Policy (No. 10) as referring to political or executive acts, and not including a loss caused by riot or by ordinary judicial process. As goods were held to be lost when they could not be forwarded to their destination because of these perils (e.g. siege of a city), insurers introduced the frustration clause, the effect of which is to relieve the insurer of liability for a claim based on ‘arrests’ etc.
Arrival, arrived (arrd.)
A note on a report or claim to indicate that the vessel has completed the voyage or partvoyage, or cargo has reached its destination after the transit covered by the policy. Sometimes the term is used colloquially to refer to the successful completion, with no loss or claim, of a non-marine cover.
Arrived Damaged Value
The value of cargo which has been damaged in transit, at the time of its arrival at the place where the adventure terminates.
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UK: The depreciated value of cargo on arrival at the place where the voyage terminates following damage in transit. A formula is used to establish the percentage depreciation.