UK,REFERENCE: See: solvency margin.
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UK: Surplus of insurer’s realisable assets over its liabilities. General insurers and long-term insurers must demonstrate a required minimum margin of solvency (RMM). For a general insurer this is the higher of two results, one based on annual premiums (the premium basis), the other based on the average of three years’ claims (the claims basis). Also an insurer must ensure that the margin does not fall below the guarantee fund. One-third of the required margin of solvency constitutes the minimum guarantee fund (MGF). The MGF for a general insurer varies according to the class of business up to €3 million for motor, aviation, general, credit and suretyship (less for mutuals). RMM also varies, according to class, for long-term business. For life business this is €3 million for proprietary companies (less for mutuals). See ASSET RULES; DETERMINATION OF LIABILITY RULES; MINIMUM GUARANTEE FUND.
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The total assets of an insurance company must exceed its liabilities (other than share capital) by a relevant amount, known as the margin of solvency.
Insurance Encyclopedia
Marijuana
Any Cannabis sativa plant with more than 0.3 percent of THC. Under some U.S. laws refers to the viable seeds, leaves and flowers of the cannabis plant. Marijuana is often used as a generic name for any parts of the cannabis plant.
Marine
Of navigation on, or shipping by sea. Pertaining to the sea or to transportation; usually divided as to “ocean marine” and “inland marine,” the insurance covering transportation risks.
Marine Adventure
Marine adventure includes any adventures where (i) any insurable property is exposed to maritime perils (ii) the earnings or acquisition of any freight, passage money, commission, profit or other pecuniary benefit. or the security for any advances, loans or disbursements is endangered by the exposures of insurable property to maritime perils, and (iii) any liability to a third party may be incurred by the owner of, or other person interested in or responsible for, insurable property by reason maritime perils.
Marine and Aviation Insurance
(War Risks) Act 1952 Empowers the UK government to reinsure British ships and aircraft against war risks and, when in the UK, cargo, foreign ships and aircraft. In the absence of an alternative, the government can also provide primary war risk insurance if the UK is at war. This is important as war risks cover in the commercial markets is subject to cancellation at short notice at time of war or terrorism. The government used its powers during the Gulf war and again following ‘September 11’. It formed a company, Troika, to provide war and terrorism cover for airlines and service providers pending the return of commercial reinsurers to the war risks market.
Marine and aviation risks exclusion
Public liability exclusion of risks insurable in the marine and aviation markets. The exclusion is of liability arising out of the ownership, possession or use by by the insured of aircraft, hovercraft or watercraft other than barges, motor launches and non-powered craft used on inland waterways. The ownership or use of small craft is not excluded. Also the insurer modifies the exclusion so that any contingent or vicarious liability associated with craft not owned or operated by the insured is covered.
Marine cargo certificate of insurance
Evidence that an individual consignment is insured. Banks will only discount the bills of exchange on production of this certificate.
Marine Cargo General Average
This is an extraordinary sacrifice or expenditure voluntarily and reasonably made at the time of common peril. All interests have to contribute to General Average. So far as cargo is concerned, the position is as follows: If cargo is sacrificed, the owners of cargo can claim directly from their Insurers for the loss. The owners of cargo saved can claim directly, from their Insurers, for their liability to “contribute” for general average losses.Both the above are subject to the cause of general average being an insured peril.
Marine Cargo Insurance
This involves insurance of goods in transit from one place to another by way of means of transport through sea, air, rail, road, inland waterways, registered post parcels and couriers and even on back of the animal or human being. The guiding principles is that the transit should be under a “Contract of Affreightment,” which means the transporter needs to issue a document to the consignor confirming receipt of goods for transit and assurance of a safe delivery at the named destination. The consideration for this contract is the amount of freight which is payable. Examples of documents of affreightment would be Bills of Lading, Airway Bills, Lorry Receipts and Railway Receipts.
Marine clause
A fire insurance clause excluding property which is insured or would but for the existence of the fire policy be insured by a marine policy except for any excess beyond the amount which would be paid by a marine policy.