In certain circumstances, e.g. war, the shipowner is able to terminate the contract of affreightment at a place other than the original destination. Provided notice is given to the cargo insurer and any additional premium paid, the goods are held covered until sold and delivered at the place of termination or during forwarding or delivering to the policy destination to a limit of 60 days after discharge at the final port.
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A clause in a cargo policy which continues the cover the adventure is terminated short of destination in circumstances beyond the insured’s control.
Insurance Encyclopedia
Termination of risk
Under a voyage policy this is when the ship has safely moored at anchor for 24 hours at the stated port of destination. To prevent overlap with the succeeding policy which normally runs ‘at and from’, that policy is claused ‘no risk to attach until expiry of the previous policy. Under the ordinary form of cargo policy the risk terminates upon the goods being safely landed at the port of destination but account has to be taken of the clauses that normally extend the cover. See WAREHOUSE TO WAREHOUSE.
Termination of Transit Clause (Terrorism) JC 2009/056
This is a paramount clause and shall override anything contained in this insurance inconsistent therewith. The risk of terrorism is covered under a marine cargo insurance but only when the goods are in the ordinary course of transit i.e., outside the control of the Assured and as per respective transit clause in the relevant contract of insurance. If manuscript wordings are used, coverage for terrorism would cease when the first of the eventualities listed in clause shall occur. If, in a multi-transit policy coverage is extended for a further transit after storage, cover for terrorism would re-attach once the extended transit begins but during the storage period, no cover against terrorism would be available.
Termination reason
Cause for cancellation of an insurance policy.
Terms of business agreement TOBA
Each Lloyd’s broker that wishes to do business with a managing agent must enter into an agreement with the managing agent which records the general terms and conditions on which business will be conducted between them.
Terms to be agreed (TBA)
Indication on a slip that certain contract terms have to be finally agreed. Marine underwriters commonly accept the risk at a rate to be agreed although other aspects of the risks, e.g. commencement date, can be covered by the term. An alternative term ‘t.b.a. l/u’ means ‘to be agreed with the leading underwriter’.
Territorial limits
Geographical limits within which the insured event or loss must occur. Example: A public liability policy applies to occurrences within Great Britain, Northern Ireland, the Channel Islands or the Isle of Man plus temporary visits overseas for manual or non-manual work. Cover may be subject to a jurisdiction clause.
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The geographical limits within which an insurance is stated to operate.
Territorial rating
A method of classifying risks by geographic location to set a fair price for coverage. The location of the insured may have a considerable impact on the cost of losses. The chance of an accident or theft is much higher in an urban area than in a rural one, for example.
Territory
Geographical region in which an insurance agent has exclusive sales.
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Location where the policy coverage applies. May be restricted to the United States, its territories and possessions or could be worldwide. It depends on what exactly is being insured.
Terrorism
1. The Pool Re/HM Treasury definition for (re)insurance purposes is: ‘an act of any person acting on behalf of or in connection with any organisation which carries out activities directed towards the overthrowing or influencing of any government de jure or de facto by force or violence. 2. Terrorism Act 2000, s.1: an act of terrorism is any specified action, the use or threat of which is designed to influence any government or to intimidate the public in order to advance a political religious or ideological purpose. The specified actions are actions which: (a) involve serious violence against a person; (b) cause serious damage to property; (c) endanger a person’s life (other than the person committing the act); (d) create a serious risk to the health or safety of the public; or (e) are designed to interfere with or seriously disrupt an electronic system.
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The use of violence for political ends and includes any use of violence for the purpose of putting the public in fear.