Any agreement that extends across a single market, i.e. marine, aviation or non-marine, only. They may be joint agreements between Lloyd’s underwriters and insurance companies. Examples include leading underwriters’ clauses in all three markets, the ‘companies collective signing agreement’ (non-marine) and the Marine Waterborne Agreement.

EC term for single European licence.

An insurance under which a ‘one off’ premium secures cover for a long term, even in perpetuity as for a restrictive covenant indemnity.

Life company single premium contracts providing a lump sum investment with limited cover for medium- to long-term capital growth. They are a collective investment alternative to a unit trust. Special tax rules allow limited tax free withdrawals but capital growth is subject to higher rate income tax. The bonds may guarantee income or growth. Bonds may be categorised as: managed bonds; with profits bonds; equity bonds or income bonds.

A pensions method of determining the premiums payable under an insurance contract with the object of meeting within each year the cost of benefits relating to that year.

If two ships in the same ownership collide, the clause confers on the insured the same rights as if the two vessels were separately owned and separately insured. An appointed arbitrator apportions liability on that basis.

Questionnaires adopted at Lloyd’s and the LMX to give an overview of the reinsured’s account. They are regarded as providing the minimum needed for the purpose of a reinsurance submission. Charles Skey, a Lloyd’s nonmarine underwriter, created the forms.

Catastrophe reinsurances at very high, even unlikely levels, that create an extra degree of security against events of unexpected severity.

A reinsurance premium under a non-proportional treaty based on burning cost for the period subject only to agreed minimum and maximum amounts. See ESCAPE CLAUSE.

A scale of commission payable under a treaty where the amount of the commission varies inversely with the loss ratio subject to a maximum and minimum.