1035 exchange

“An exchange of life insurance for annuities,” as defined in Section 1035a of the United States Internal Revenue Code.

1992 CLC

A Protocol to the 1969 CLC, the International Convention for Civil Liability for Oil Pollution Damage. Makes shipowners strictly liable for oil pollution damage caused by tanker spills of persistent oil. Tonnage is used to calculate liability. CLC establishes mandatory insurance and makes direct claims against the insurer possible. The 1992 Fund supplements it (the IOPC 1992 Fund). Non-tanker bunkers are subject to the International Liability for Bunker Oil Pollution Damage 2001.

Also see the MERCHANT SHIPPING (SALVAGE AND POLLUTION) ACT OF 1994 and the POLLUTION CLAUSE.

1992 Fund

When CLC compensation is insufficient, this fund supplements the insurance-backed liabilities of tanker owners’ CLC. The International Convention on the Establishment of an International Fund for the Compensation of Oil Pollution Damage, signed in 1992, is the foundation of the Fund. The Fund is an international intergovernmental organisation. The Fund’s maximum payout for a single incident was increased in November 2003 to £203 million in Special Drawing Rights (equivalent to £180 million). The Fund is supported by levies levied on the oil industry.