a document used in the Lloyd’s market which sets out the details of the risk for which cover is sought and is presented by the broker to the underwriter, the latter signifies on the slip the extent of his/her intended participation in the risk and, in the case of the leading underwriter, the premium to be charged.

An addition to the slip, expressing the underwriter’s agreement to an issue agreed by the underwriter after his initial acceptance.
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An agreement expressed by an underwriter on a broker’s slip at a date subsequent to the original acceptance of the risk.

Best practice guidelines enabling brokers and underwriters to develop their own pro-formas to ensure the slip contains clear and complete information relating to the risk, its administration and procedures for agreement of claims and endorsements. They ensure clarity of contract terms and responsibilities.

Allows risks to be written electronically.

The insurer on the placing slip identified as leader. Under LMP 2001, the slip leader has responsibility for coordinating contract and claims management and administration.

A latent gradually progressive disease (e.g. asbestosis). The term accident is used as the ‘fortuity’ is in the outcome rather than the cause which is often exposure on a continuing basis to harmful work conditions. Pollution damage caused gradually over time by seepage is also regarded as a ‘slow accident’. See LOSSES-OCCURRING; TRIPLE TRIGGER THEORY; INJURY IN RESIDENCE.

Funds pooled by all Lloyd’s syndicates out of which all small claims are paid.

Occupational pension scheme where: all assets are pooled in a central fund; benefits are paid from those central funds; and trustees have wide powers of investment. They may be insured, i.e. held centrally in insurance policies only, or self-administered where the funds are held centrally in investments outside policies, e.g. in property, shares, loans. There must be fewer than 12 members, one of whom is a controlling director. The appointment of a pensioner trustee is mandatory for exempt approved status.

process by which an insurer may protect holders of with-profits policies against market swings by adding to and drawing from a smoothing account created as part of the “investment reserve”.

Weather derivative based on expected level of snowfall in a given location over a specific time. Snowfall above the reference level may impose additional costs on snow-clearing local authorities, who hedge the risk with a call option. Levels below the reference point reduce revenues at the ski resort, which hedges with a put option. The former receives a payout at high levels of snow, the latter at low levels. See PRECIPITATION COVER; SUNSHINE COVER.