A phrase used when the principal (i.e. the employer) and not the contractor arranges the insurance even though the standard form of contract, e.g. Joint Contract Tribunal, normally places insurance obligations on the contractor. It often means a combined contractors’ ‘all risks’ public liability being effected. This arrangement is sometimes called ‘wrap-up cover.

document the FSA requires life insurers to produce showing how they run with-profits business; its aim is to improve policyholder protection, insurer governance and transparency.

Eleven principles detailed in Block 1 of the FSA Handbook. They are a general statement of the fundamental obligations of firms under the regulatory systems. The principles embrace, inter alia, standards of care, integrity, customer relationships based on trust and dealing with the regulators in an open and cooperative manner. Breaching a principle makes a firm liable to disciplinary action. (Visit www.fsa.gov.uk).

Priority to pay some liabilities, e.g. guaranteed minimum payments, before others when a pension scheme is wound up. If the assets are insufficient to meet all liabilities the priority rule applies. The trustees must follow this scheme rule in deciding the order in which they settle scheme liabilities.

Passenger seating vehicles having not more than 12 seats and used for the carriage of passengers for hire or reward but, not being authorised to ply for hire from the streets and designated places, are hired direct from the insured’s premises or instructions issued therefrom.

A convenient term to distinguish hotels from those run as inns. It is an establishment, which, unlike an inn, picks and chooses its guests. The proprietor’s responsibilities for guests and their property are not governed by any special legal rules. The normal laws of tort, contract and bailment will apply.

A normal insured pension but having a fund link that is unique to the individual or partners in a business. The life insurance company owns the assets of the funds which are therefore subject to regulatory control so the individual cannot manage the fund as can happen with self-investment personal pensions.

1. Insurance that enables the insured to gain access to medical treatment, with benefits including: a private en-suite room in hospital; surgeon’s and other specialists’ fees; out-patient treatment, including physiotherapy; day care treatment, including diagnostic and surgical procedures. 2. An integral part of a typical travel insurance.