An asset, under rule 4.1(3) of IPRU (INS), that be may brought into account in determining the value of an insurer’s net assets for margin of solvency purposes. Goodwill and stock-in-trade, for example, are not admissible assets and certain assets are admissible only to a specified extent. See ASSET VALUATION RULES.

In life insurance the insured may have his policy endorsed ‘age admitted’ by supplying the insurer with his birth certificate. This may occur at inception or during the currency of the policy. When age has been admitted, the insured or his representatives will not to have to prove the insured’s age when a claim is made.

1. An admission by an insurer or reinsurer that they are liable for a claim under their contract. 2. An admission by an insured that he is liable for injury or damage caused to a third party. In a liability policy the insurer’s conduct of proceedings clause and non-admission of liability clause prevent the insured from negotiating with the claimant or admitting liability without the insurer’s consent. The clauses are conditions precedent to liability.

(automatic personal accident cover). A personal accident insurance for aircraft passengers offering benefits in return for which they waive any rights they may have at law. The maximum sum payable usually corresponds with the limits of either the Warsaw Convention, the Hague Protocol or the 1967 Carriage by Air (Applications and Provisions) Order.

An agreed percentage increase applied to the total invoice plus freight for unknown expenses at the time of shipment and also for a portion of the insured’s profit.

Option at retirement whereby the individual’s pension payment (monthly, quarterly or some other period) may be payable at the beginning or end of the relevant period. Payments in advance attract a small cost.

Similar to a performance bond. It safeguards the principal, who has made advance payments to the contractor, against loss due to poor performance or default by the contractor.

A form of business interruption insurance relating to a new business or a new activity for an existing business. It covers loss of gross profit following delay consequent upon damage insured under a contractor’s all risks or erection all risks policy. The delay in starting the activity may be due to damage to: (a) the new works, extension or machinery; (b) suppliers’ premises; (c) machinery in transit. The indemnity period commences on the date production was intended to start and continues until it does actually start, but any increase in cost of working is calculated from the date of loss.

Cover for a property owner against loss of rental income due to an insured event delaying the letting of his property. The sum insured is the annual rent multiplied by the number of years representing the maximum delay period. A loss is measured by the rent that would have been paid by the tenant during the period of delay.

System that may be used for underwriting members of group schemes. Once a group member has been accepted at ordinary rates he becomes entitled to increases in cover up to a pre-arranged percentage without further evidence of health or underwriting scrutiny. Also called guaranteed insurability.