A captive insurance company that confines its underwriting to the risks of its parent company.

Contracts that are a sub-category of long-term insurance contracts, e.g. critical illness and income protection, in respect of which: (a) the benefits are payable only on death or in respect of incapacity due to injury, sickness or infirmity; (b) the benefits are payable on death (other than accidental death) only where death occurs within 10 years of the date on which the person in question was first insured, or where death occurs before that person attains a specified age not exceeding 70 years; (c) the contract has no surrender value, or the consideration consists of a single premium and the surrender value does not exceed the premium; (d) the contract makes no provision for conversion or extension causing it not to comply with (a), (b) or (c); and (e) the contract is not one of reinsurance. These contracts are governed by the Insurance: Conduct of Business rules. Long-term care is regulated as an investment product and therefore excluded from the definition.

an insurer who carries on only reinsurance.

The figures relating to premiums, claims, etc., refer only to the particular year of account. Figures relating to business written in earlier years but transferred into that year are excluded.

Gives the buyer/holder the right, but not the obligation, to sell to the issuer the underlying instrument or, in the case of a weather derivative, the cash value of a weather data index such as degree days. Put options are also called floors or weather floors.

Provisions to enhance the safe provision and use of work equipment. The Regulations place general duties on employers and list minimum requirements for work equipment to deal with selected hazards in any industry. ‘Work equipment’ includes everything from a hand tool, through machines of all kinds, to a complete plant such as a refinery. Part IV has specific requirements for power presses. See FENCING OF MACHINERY. –

Peril that has to be interpreted against the backdrop of qualifying words. The insured must show that his loss was caused by the peril as qualified. The standard fire policy contains qualified perils – fire is covered only if not occasioned by or happening through, riot and civil commotion. An insured must therefore show that his fire damage was ‘fire damage not caused by riot or civil commotion’. See ONUS OF PROOF.

A life insurance policy certified by the Inland Revenue as complying with the ‘Qualifying Policy Regulations’. Proceeds on maturity or death will be tax exempt.

Length of time an employee has to work for an employer before becoming eligible to join the employer’s pension scheme. Also refers to the service to be taken into account to entitle a member to a ‘short service benefit.

A year when somebody has paid national insurance every week. If necessary an individual can clear any arrears by a single payment. No payment is required in respect of weeks credited to persons in receipt of social security benefits.