A privately arranged contract that specifies the price for a transaction in the future. It differs from ‘futures’ in that it is not standardised and is not traded on organised exchanges. Each party bears the other’s credit risk.
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An agreement for insurance to come into force at some future date.

Institute Cargo Clause 12. Where, as a result of an insured peril, the transit is terminated short of the destination, the underwriter will reimburse the insured for any extra charges incurred in unloading, storing and forwarding the goods to their destination. The clause does not apply to general average or salvage. Forwarding charges due to insolvency or financial default are excluded.

Seller pays all charges and loads goods on truck or rail, retaining the risk of damage until delivery to the carrier or railway agent. The buyer is responsible after such delivery and for further charges including insurance.

CII’s starting point for newcomers to general insurance under the banner Award in Insurance. The single-subject course provides a basic understanding of how the market works, fundamental risk and insurance principles and procedures, and core personal and commercial insurance products. After completing FIT, candidates can proceed to the next general qualification, the Certificate in Insurance.

Fire Insurance clause that provides that the value of the foundation (any part of the building below ground level) can be excluded from the buildings sum insured and is not to be included when determining the value of property at the time of a loss. The clause is used when it is considered that the foundations would not be affected by a loss.

Became law in the UK in January 2003. Principal aim is to improve the claims process for EU residents when claiming against an insurer based in another EU state. The UK’s response is the Motor Insurance Database which, on being given the vehicle registration number of the third party, will be able to trace the third party’s insurer.

Breakage of fragile property is commonly excluded from ‘all risks’ policies but some cover can be bought back by the insured. The exclusion generally applies to ‘ordinary breakage’ and not breakage due to fire and theft.

The risk of damage to surrounding property by physical impact resulting from flying from any part of any insured item of plant. The risk is insurable as a named peril under engineering policies and can be combined with an inspection service.

1. Relieves insurer of each and every loss that does not exceed a specified amount or percentage. If the limit is exceeded the loss is paid in full. The term, is distinguished from an excess, the amount of which continues to be deducted for each and every loss above the specified amount. 2. The amount by which a Lloyd’s syndicate is permitted to exceed its syndicate allocated capacity. 3. See LLOYD’S FRANCHISE.

Claim where the insured has: (a) made false statements of fact; or (b) made statements, knowing them to be false, or not believing them to be true, or without caring whether they were true or false. Good faith, implied in all insurance contracts, requires that any claim by the insured shall be honestly made. If the insured submits a fraudulent claim all benefit, including the premium, under the policy is forfeited. See CHEATLINE.
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Dishonest claims made by people who suffered no loss or who magnify a loss for their own gain.