A US term to describe a risk that is not ordinarily acceptable to insurers and therefore by law is assigned to an insurer participating in an assigned risk pool or plan. Each insurer in the pool accepts its share of all of the pooled risks.
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A risk not generally acceptable to any insurance company but for which the law says that insurance must be acquired. Personal auto liability is one such necessary coverage. Insurance companies doing personal auto business in a state can be required to accept assignment of a portion of the state’s unacceptable drivers as insureds.
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A risk that may not be generally acceptable to any insurance company but for which the law says that insurance must be acquired. Motor Third Party is one such necessary coverage.
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MEDCIAL, US: Uncertainty (risk) that insurance underwriters do not want to insure but because of state laws are required to insure. For example, individuals who may be within a certain young age group, may have had an automobile accident, heart condition, diabetes, or hypertension. Most assigned risks are issued insurance through a system of proportional assignment chosen from a group of insurance companies. This is more commonly seen in casualty insurance.
The assignment of rights and obligations under a contract, which arises automatically by operation of the law without the consent of either party to the contract (e.g. on death or in the event of bankruptcy).
Covers ongoing liability of a tenant to a landlord after assigning the lease. The outgoing tenant, i.e. the assignor, may be liable to the landlord for defaults by the new tenant. The standard policy is premises-specific and is for one year, but up to three years can be arranged. Cover is in respect of liability to pay rent, interest on rent and damages and claimant’s costs and ‘own costs. There is an annual aggregate limit of indemnity in the range £50,000 to £500,000. The underwriter assesses the lease, the assignment, the financial history of the new tenant and references.
An FSA regulated activity in so far as it relates to the administration and performance of insurance policies. It includes helping policyholders make insurance claims, such as notifying a claim to an insurer and negotiating the settlement on behalf of the policyholder.
Two or more closely associated employers who are allowed to participate in the same pension scheme arrangements. An employee who transfers from one company to another company associated in this is treated as having had continuous service.
Where a person has worked for more than one of the associated employers. This means that the service and salary of that person are amalgamated for pension purposes.
The ACII designation is available to CII members who have successfully completed the Advanced Diploma in Insurance qualification. (www.cii.co.uk).
Captives that underwrite the risks of members of an industry or trade association.
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UK: A captive insurer owned by the members of a sponsoring organization or group, such as a trade association.
An association of independent practitioners. It sets examinations for those engaged in marine insurance as average adjusters. Founded in 1869, it promotes the correct principles in the adjustment of Averages and uniformity among Average Adjusters? The association’s expert committees serve the marine insurance community, and may, by a panel of referees, act as arbitrators in the case of dispute. All members are practising average adjusters. See also UK SOCIETY OF UK AVERAGE ADJUSTERS.
The trade association for insurance companies, whose 400 members transact 95 per cent of the business of UK insurers. It speaks out on issues of common interest, participates in debates on public policy issues and promotes high standards of service. Its policy work centres on: general insurance, life and pensions, financial regulation, taxation and investment affairs. It has expert committees and represents the industry externally, involving central government, media affairs, European and international activities. (www.abi.org.uk).