Set up by the government to develop criteria for evaluation of the scientific, medical and actuarial evidence available to support the use of genetic tests in insurance risk assessment and to evaluate those tests against these criteria. Members come from the insurance industry and clinical and genetic patients groups. The insurance industry has agreed a voluntary code with GAIC whose aim is to ensure that individuals do not avoid tests because they fear a result harmful to their life cover applications. See ABI GENETIC TESTING CODE OF PRACTICE.

A gift made during a person’s lifetime as opposed to a legacy passing on death. Inheritance tax is payable on gifts inter-vivos at a reducing rate over a seven-year period. A typical insurance solution is a decreasing term insurance that will provide funds on death during the seven-year period.

Gilt-edged securities are bonds and other loans issued by the UK government or UK local authorities, considered as safe investments. However, they are not risk free as the market price varies according to the financial climate, in particular the prevailing rate of interest.

Covers: loss/damage during launching, flight and landing, all subject to an excess; loss/damage while in a picketed hangar or not left unattended in the open at an approved launching site or in transit; third party injury and damage; passenger liability.

Reinsurance insurance covering all, or nearly all, of the reinsured’s business, i.e. ‘globally’ in ‘business spread’ and not ‘geographic’ terms. The ‘global’ pays losses in excess of the aggregate net aggregated losses sustained by the reinsured’s many departments (e.g. motor, aviation, marine, property, etc.) following one major event, such as Hurricane Betsey, that strikes simultaneously at ships, aircraft, property on land etc. Policy wording is similar to an excess of loss catastrophe reinsurance. ‘Globals’ can provide cover for specific risks as well as large risk accumulations.

Worldwide programme enabling a multi-national to establish the same level of cover globally. It could consist of a master policy issued in the home country that results in a totally non-admitted insurance programme, i.e. no local policies. At the other extreme it is a totally admitted programme with all local entities being issued with policies and all premiums and losses being dealt with locally. Normally the programme entails: (a) a master policy arranged in the home country giving uniform cover for the whole group; and (b) local admitted policies reflecting local needs. The master policy tops up local policies to gain consistency across the group. The master policy is subject to a difference in conditions clause and a different in limits clause.

The return completed by Lloyd’s for FSA regulatory purposes, covering the activities of all Lloyd’s syndicates. When the returns are consolidated Lloyd’s publish the Lloyd’s market underwriting results.

UK: Acting honestly. It means the absence of fraud, but falls short of the doctrine of utmost good faith.
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Lack of fraudulent acts or intentions. In general all contracts are subject to good faith. Compare with “Utmost good faith.”
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Most ordinary contracts are good faith contracts. Insurance contracts are agreements made in the utmost good faith. This implies a standard of honesty greater than that usually required in most ordinary commercial contracts.