Immediate annuity

Contract that begins making periodic payments to the annuitant within 1 year from the purchased date.
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UK: An annuity that commences payment to the annuitant at the end of the first prescribed payment period after the payment of the purchase price.

Immediate care annuity

Purchased life annuities to fund the care of the elderly entering residential or nursing homes at a time of need. The annuity takes the form of tax-free payments to the care provider as it is a part of their taxable income. Immediate care annuities are ‘designated investments’ and therefore subject to the FSA’s Conduct of Business Rules. The annuities may be linked to the Retail Price Index.

Immediate cause

This means the proximate cause, i.e. the nearest cause in efficiency and not the nearest in time. Bacon summarised this by saying, ‘it were infinite for the law to consider the cause of causes, and their impulsions one of another, therefore, it contenteth itself with the immediate cause, and judgeth of acts by that, without looking to any further degree.

Immediately

Has been held to mean ‘with all reasonable speed considering the circumstances of the case’ (Re Coleman’s Depositories Ltd and Life and Health Assurance Association (1907). In Farrell v. Federated Employers Insurance Association Ltd (1970) a writ served on 7 January 1966 was not given to the insurer until 3 March 1966. Lord Denning MR said that ‘with all reasonable speed would mean by the end of January at the latest’. Insurers often require notification of a claim immediately and, under liability policies, require the insured to forward every writ, notice, letter or other document served on him immediately on receipt.