An investment strategy that determines what percentage of your assets are held across financial assets: namely cash, bonds and stocks.
Insurance Encyclopedia
Strategic national implementation process
Workgroup on Electronic Data Interchange’s (WEDI’s) national effort for helping the health care industry identify and resolve any Health Insurance Portability and Accountability Act (HIPAA) implementation issues.
Strategic risk
Group of risks impacting on strategy and long-term plans of the organisation. The risk groups include: market and customer trends; economy/ policitical stability; competition; tactical decisions (investments, mergers, etc.); achieving predicted performance; major catastrophe/incident, including reputational risk; ethics, culture; corporate governance. They demonstrate the need for holistic risk management.
Stratification of Losses
Classification of losses (either individual losses or annual total of loss) into categories of rupee size in order to analyze the likelihood of various levels of loss severity and to make appropriate decisions for financing or controlling these losses.
Street works (or Road and Highways Act) bond
A performance bond that guarantees to a highway authority that a building developer will fulfil his obligation to construct roads on the estate or area of his development. The bond is usually 100 per cent of the construction costs involved.
Stress
A demand on physical or mental energy. It can cause a breakdown in a person’s physical or mental health. Employees, whose stress is caused by their employers’ breach of duty, may bring actions in the civil courts for damages or, if linked to dismissal, compensation may be awarded by an employment tribunal. The risks come under employers’ liability insurance and/or employment practices liability insurance. Employers need to include stress in their risk assessment and educate employees in stress management.
Stretched aggregate
Refers to extending an insurance policy’s aggregate limit of liability over two or more policy periods. A stretched aggregate is typically used in one of two different contexts. First, a multiyear policy may be subject to a single aggregate limit of liability for the entire multiyear policy period (perhaps subject to a limit of liability reinstatement provision). Second, if upon expiration of a single year policy period the insurer is uncomfortable for underwriting reasons with renewing the policy with a new fresh limit of liability, the insurer may agree to renew the policy without a new aggregate limit of liability and merely extend or stretch the preexisting aggregate limit of liability to the new policy period as well. In either case, the stretched aggregate constitutes the insurer’s maximum liability for all loss on account of all claims first made during the extended or multiyear policy period.
Strict Liability
A legal doctrine under which a manufacture is held responsible for injuries arising out of defective products, regardless of whether or not the manufacturer was negligent.
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Liability ascribed to a manufacturer or seller of a defective or dangerous product regardless of any fault or negligence.
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UK: Liability even when there is no proof of negligence. It may arise at common law, e.g. the rule in Rylands v. Fletcher (1868), or by statute as in the case of the Consumer Protection Act 1987. The rationale is that the person creating a recognised ‘dangerous situation’ should be liable without proof of fault for the consequences. Defences to strict liability are very limited.
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US: Liability for damages even though fault or negligence cannot be proven.
Strict liability (Liability Insurance)
A kind of liability that manufacturers and merchandisers may be exposed to because of defective products they have sold. This liability can apply without regard to responsibility or negligence. To hold the manufacturer or merchandiser liable, the wronged party must prove that the product is defective, which makes it dangerous.
Strike
Physical damage to the insured property Directly caused by persons involved in a labour dispute resulting in a strike. It does not embrace expenses or financial loss suffered by the insured as a result of the strike.
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UK: The level of the index used in a weather derivative above or below which the writer of a call or put option starts to pay the holder. For example the strike on a weather derivative may be based on the excess of 100 Heating Degree Days.