The monetary value of sales in a period of time. The figure reflects the level of activity in a firm or organisation and may be used to measure exposure as in products liability. See ADJUSTABLE POLICIES; STANDARD TURNOVER.
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The money earned for goods supplied or services rendered in the course of the business at the premises specified in the policy.

A method of computing the unearned premium reserve. It is assumed that, on average, policies run from the middle of the month of inception. The appropriate number of twenty-fourths of premiums relating to the policies commencing in each month is then carried forward as unearned.

A warranty used in catastrophe excess of loss reinsurance to ensure that the reinsurance is not invoked unless at least two distinct risks are involved. Involvement in single losses applies to working cover excess of loss treaty. The warranty is used in life, personal accident, catastrophe property and reinsurance in the London excess market (LMX).

Usually means ordinary shares issued by a UK incorporated company, not being an investment trust, and which are quoted in the official list of a recognised stock exchange in the UK or traded on the Alternative Investment Market.

Insurers whose head office is not in the UK must maintain a margin of solvency and a UK margin of solvency. See SOLVENCY MARGINS.

The loss of liquid, also called trade loss, when shipped in bulk or in casks, and occurring during a voyage as a result of shrinkage or evaporation. Consequently, the insurer pays only for leakage losses in excess of a stated figure. See LEAKAGE.
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The natural loss of liquids in cargo.

1. The amount that a reinsured can recover under an excess of loss reinsurance. This is usually defined as all payments in respect of the claim, including loss adjustment expenses but excluding the reinsured’s office expenses, less recoveries by way of salvage, other reinsurances or otherwise. The clause allows payment to the reinsured before all recoveries have been made and before the ultimate net loss has been determined. 2. In an umbrella liability policy it is the amount actually paid or payable for which the insured is liable (including or excluding defence costs) after deducting recoveries and reinsurance that inure to the benefit of the contract.

Beyond the power. An action outside the proper authority of a corporation or a director or officer for which they may be liable.

Permission granted by a Lloyd’s broker to a nonLloyd’s broker who uses the name, pseudonym, etc., of the Lloyd’s broker to place business with or on behalf of The underwriting members. Lloyd’s broker must intend becoming a Lloyd’s registered broker within three years and confine the arrangement to one Lloyd’s broker. The non-Lloyd’s broker must undertake to submit to all Lloyd’s bye-laws and regulations. The Lloyd’s broker is responsible for premiums due to the underwriting members.
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An arrangement between a Lloyd’s broker and a non-Lloyd’s broker whereby business is transacted at Lloyd’s by the non-Lloyd’s broker using the Lloyd’s broker’s slips. Also known colloquially as a piggy-back or flag of convenience arrangement.