The Rantings of the barely human.
This case resulted in the classic definition of proximate cause: ‘proximate cause means the active, efficient cause that sets in motion a train of events that leads to a result, without the intervention of a force started and working actively from a new and independent source’.
See Als STRAW CAUSES; LAST CASES; INTERVENING CAUSES; REMOTE CAUSE; CONSECUTIVE CAUSES. CONCURRENT
Abbreviation of ‘passengers’ as used on aviation slips.
Reinsurance term indicating that the reinsurer will pay without questioning the insurer’s liability under the original insurance.
Livestock policy under which the insurer pays the insured a given percentage of any compensation received from the government as compensation for the compulsory slaughter of their animals to prevent the spread of a disease, e.g. foot-and-mouth.
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A policy on livestock under which insurers agree to pay a supplement of a give percentage of compensation paid for slaughter of stock by the Department of Agriculture when slaughter is ordered to prevent the possible spread of a disease.
Pay as you Drive (PAYD) motor policies are a new concept of insurance contracts. Also called Usage Based Insurance (UBI) because of an annual premium be established, the premium is fixed according to the number of kilometers done by the car, besides other characteristics of the risk traditionally used in pricing. Therefore, those who use the car more are going to pay a higher premium because they are more exposed to the risk of accident.
Method whereby pension scheme payments are made out of current income as they fall due rather than by previous funding. The state pension schemes operate in this way.
A reinsurance term providing that the reinsurer will not question payment of any claim for which the insurer is liable under the original insurance.
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See: “Reinsurance, Pay as you may be paid.”
1. Rating method. The underwriter bases his price on expected loss frequency over a period of time. If a loss is forecast every five years, the risk premium, ignoring expenses and profit margins, is the limit of cover divided by five, giving a five-year pay back. When quoted as a percentage of the limit, the rate is termed ‘rate on the line, the inverse of pay back, so 20 per cent means five-year pay back. 2. Pay back to reinsurer following a major loss or losses. The renewal premium is increased for a period during which time the contract is in ‘pay back’.
Liability insurance (e.g. directors’ and officers’) indicating that the insurer will pay defence costs on behalf of the insured. Where the insurer’s promise is to ‘indemnify’, the obligation is to reimburse the insured’s outlay instead of paying ‘up front’.
See: PROTECTION AND INDEMNITY CLUBS.