Indisputability Clause

A clause in a policy providing that after a stated period the insurer may not dispute the validly of the policy in the absence of fraud on the part of the insured, thus relieving the insured of the consequences of any innocent non-disclosure or misrepresentation.

Individual arrangement (IA)

Occupational pension scheme for a named employee. The scheme is insured and is normally established by an exchange of letters between the employer and employee. Where the letter does not incorporate a declaration of trust it is linked with a formal declaration of trust to ensure that the arrangement is legally enforceable. IAs are Inland Revenue approved.

Individual Capital Adequacy Standards (ICAS)

Mechanism in calculating enhanced capital requirements (ECR) based on an industry-wide assumptions to allow for differences in the risk profiles of individual firms of insurers, both life and non-life. ICAS operates through Individual Capital Guidance that is usually set above ECR and will be affected by whether firms’ risk assessment processes follow all the FSA’s guidance. See RISK-BASED CAPITAL.