A term used to specify the limit of contractual liability coverage. This term can refer to lease agreements, easement agreements, and any other agreement that relates to the insured’s business.
Insurance Encyclopedia
Insured funding
To put monies into a retirement plan in which the sponsor of the plan buys annuity or life insurance contracts on behalf of each participant. The insurance company guarantees a specific benefit to each retiree.
Insured peril
A harmful event which is covered under a contract of insurance.
Insured personal pension
Pension under which an insurance company manages the assets of the plan. The fund managers have to be FSA authorised. This authorisation also applies to private managed funds but not selfinvested personal pensions or small self-administered schemes where the investment decisions are the responsibility of the member.
Insured plan
Type of employer’s funding instrument in which assets are held by a life insurance company under a group annuity contract guaranteeing payment of benefits.
Insured plan (Pensions)
A type of retirement plan wherein benefits are guaranteed by an insurance company. This does not necessarily mean that the plan includes life insurance.
Insured scheme
Pension scheme under which the pensions and other benefits are secured solely by insurance policies or annuity contracts managed by the insurance company. Compare with managed fund policy.
Insured v. Insured or i vs. i or I v. I
Refers to the exclusion in all D&O insurance policies that eliminates coverage for claims by or on behalf of one insured against another insured. Because the company is insured under D&O policies to the extent the company indemnifies loss incurred by directors and officers, this exclusion not only eliminates coverage for claims by directors and officers, but also claims by or on behalf of the company. Most D&O insurance policies contain several exceptions to this exclusion (i.e., grant coverage for certain types of claims by or on behalf of insureds). Depending upon the specific policy, the following types of claims may be excepted from the exclusion (i.e., covered) 1. a shareholder derivative claim on behalf of the company if the shareholder prosecutes the claim without the assistance of any insured 2. employment-related claims by directors or officers 3. a claim by a director or officer for contribution or indemnity if the claim directly results from another claim covered under the insurance policy 4. a claim by a trustee or receiver in the insured company’s bankruptcy or insolvency proceeding.
Insured Value
The value expressed in a Policy as being the agreed value of the property insured, and on which all claims will be based.
Insured warranty
An extended warranty where the cover is supplied by an authorised insurer and therefore subject to FSA regulation. Service-backed warranties provide repair cover that is not insurance backed. When issued on domestic electrical goods the retailers concerned may be exempt from FSA authorisation and regulation takes the form of a code of conduct (e.g. British Retail Consortium Code of Practice). Motor EWs are regulated by the FSA.