Occurs when two parties have a simultaneous insurable interest in the same subject-matter. The buyer of cargo may insure the cargo, but the seller may also insure his contingent interest to guard against default by the buyer. Dual but not identical insurable interest also arises with mortgagors (full interest) and mortgagees (interest to the extent of the loan).

Four days in the year once linked to the renewal of annual policies and other transactions. Fire and accident insurers extended the first period of annual insurances to the nearest quarter day. In England and Ireland – Ladyday (25 March); Midsummer (24 June); Michaelmas (29 September); Christmas (25 December). In Scotland: Candlemas (2 February); Whitsun (15 May); Lammas (1 August); Martinmas (11 November).

A professional indemnity clause whereby the insurer agrees to pay any claim without requiring the insured to contest it unless a QC advises that it can probably be successfully defended.

in the insurance industry generally, a form of proportional reinsurance indemnifying the ceding company against a fixed percentage of each risk; in Lloyd’s, a contract under which a member makes arrangements for another person to take over their rights or liabilities from syndicate participations, usually as a means to exit the market.

Basic form of proportional reinsurance. Allocates risk, losses and loss adjustment expenses between the cedant and the reinsurer on a fixed percentage basis defined in terms of the policy limit and subject to an allowance for the cedant’s expenses. QSRs boost the cedant’s capacity and reduce the volatility of earnings.

A slip upon which a Lloyd’s underwriter presents terms for consideration by the oposer without either party being committed to a transaction.

The contamination of any material, surface, environment or person by radioactive substances such as alpha particles or gamma rays. Radioisotopes used in industry (e.g. medicine, food, pasteurisation) are generally of low power with a short life. The risk is insurable if the UK’s Atomic Energy Authority standards for the use of radioisotopes are strictly observed. Product and public liability policies exclude loss or damage from ionising radiations or contamination from any nuclear fuel or waste from the combustion of nuclear fuel. See NUCLEAR PERILS.

The rate of gross profit earned on the turnover during the financial year immediately before the date of damage, i.e. the ratio of gross profit to turnover. A business interruption policy pays the amount produced by applying the rate of gross profit to the reduction in turnover. Gross profit is calculated on the difference basis’.

a rate per £100 at which premiums are charged; a premium for a sum assured of £50,000 at 25p per cent is £125.