FSA regulation encompasses: authorisation, supervision, enforcement and decisionmaking.

The risk that a regulated entity fails to meet the requirements and expectations of its regulatory authority responsible for enforcing rules, codes and practices. The FSA has considerable authority and could vary the permission granted to authorised persons and firms leaving them unable to carry on regulated activities.

Reduced benefit payable under an income protection insurance when an insured returns to work on reduced earnings as a result of a disability. The benefit starts only after 13 weeks of total incapacity and when a full claim has been admitted.

Means that ‘spent’ convictions need not be disclosed to insurers as material facts. The rehabilitation period is five years for non-custodial sentences, seven years for custodial sentences exceeding 6 but not exceeding 30 months. Sentences over 30 months do not become ‘spent’. An agent or previous insurer who is aware of a spent conviction must not disclose it.

Means average as applied to a policy subject to the reinstatement clause. Average will not apply if the sum insured is equal to 85 cent or more of the value at risk at per the time of reinstatement. The sum insured should therefore allow for the period of insurance plus the time estimated for rebuilding. Losses settled on an indemnity basis remain subject to normal pro rata average.

An insured may be obliged to reinstate by statute or by contract under certain provisions in the Trustee Act 1925, s.20(4), or the Law of Property Act 1925 s. 108 (3).

Computer insurance indemnifying the insured in respect of the cost of reinstating data contained in the data-carrying material following accidental erasure, accidental failure of the public electricity supply when exceeding 30 minutes, and the insured being denied access to the premises or use of the computer because of loss/damage to other property in the vicinity. Other losses can be added to the cover.

Reinsurance treaty provision enabling the reinsured to purchase, at inception, automatic restoration of full policy limit after a claim. It removes the uncertainty associated with negotiating the premium after a loss has occurred.