A broker operating in the Room at Lloyd’s under an umbrella arrangement.

Liability policy with high limits covering over the top of underlying, primary, liability insurances subject to a self-insured retention. Cover is usually broader than the primary cover and may have a drop down provision.
***
A policy designed to provide protection against catastrophic losses. It generally is written over various primary liability policies, such as the business auto policy (BAP), commercial general liability (CGL) policy, watercraft and aircraft liability policies, and employers liability coverage. The umbrella policy serves three purposes it provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims it drops down and picks up where the underlying policy leaves off when the aggregate limit of the underlying policy in question is exhausted by the payment of claims and it provides protection against some claims not covered by the underlying policies, subject to the assumption by the named insured of a self-insured retention (SIR).

Lloyd’s syndicate member who has no connection with the controller of the managing agent of that syndicate.
***
A member that is either (a) not affiliated to the managing agent of a particular syndicate; or (b) not affiliated to any managing agent.

Pension scheme assets that have not yet been used to provide pension benefits.

Occupational pension scheme that is not approved by the Inland Revenue. It forgoes the tax advantages of approved schemes.

Occurs when the amount of insurance is less than the full value of the property insured and means that the insured pays a smaller premium than that required as the rate is fixed on the basis of full values being insured. It leads to partial loss claims being scaled down by average. See FIRST LOSS POLICIES.
***
the situation where the sums insured represent less than the total value of the property at risk.

Occurs where defined benefit scheme’s assets are less than its accrued liabilities. Under the minimum funding requirement the employer and the trustees must agree a schedule to eliminate the deficit over a five-year period. Extra contributions from the employer may correct the position.

The basic or primary layer of coverage, the initial policy that will respond to the covered loss. Only when the limits of the underlying policy have been exhausted will the other respective layers of insurance respond, as with the case of an excess or umbrella policy in liability insurance.

Process of evaluating and pricing risks proposed for insurance. Risks are often considered in the context of the class of business that the insurer underwrites and the insurer decides whether a particular risk is acceptable and, if so, whether the normal terms and conditions will apply. The underwriter monitors the classes of business underwritten and regularly reviews rates and strategies.
***
The process of selecting risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.
***
The act of choosing or denying risks based on their potential insurability to assess them a rate.
***
The process of determining whether to accept a risk and, if so, what amount of insurance the company will write on the acceptable risk, and at what rate. Underwriters are companies, individuals, or insurance companies that carry on this critical activity for their own account or for that of others.
***
The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of unacceptable risks.
***
The process of selecting risks for insurance and classifying them according to their degrees of insurability so that the appropriate rates may be assigned. The process also includes rejection of those risks that do not qualify.
***
US, MEDICAL: 1. In insurance, the process of selecting, classifying, evaluating, and assuming risks according to their insurability so that appropriate rates may be assigned. Its fundamental purpose is to make sure that the group insured has the same probability of loss and probable amount of loss, within reasonable limits, as the universe on which premium rates were based. Because premium rates are based on an expectation of loss, the underwriting process must classify risks into classes with about the same expectation of loss. Also called selection of risks . 2. Individual or organization (insurance company) that guarantees availability of funds to pay for losses covered under an insurance contract.