FSA has power to vary a firm’s Part IV permission on its own initiative. The grounds for exercising this power are set out in FSMA, ss.45-47.

Like guaranteed asset protection – GAP – the policy pays out in the event of the vehicle being written off or stolen, but the benefit payable is the difference between the insurance company pay-out and the original invoice value. Cover is suitable for motorists who have wholly paid for their cars or paid large initial deposits. Policies run for two or three years as selected by the insured subject to a maximum benefit of £10,000.

Products liability policy extension to indemnify any independent vendor of the insured’s product. The indemnity does not apply where the third party injury/damage arises from certain activities, e.g. intentionally changing the physical or chemical make-up of the product, undertaken by the vendor.

Pensions term meaning: (a) benefits to which active members would be unconditionally entitled on leaving service; (b) the preserved pension benefits for deferred pensioners; (c) pensions entitlement of current pensioners; including, where appropriate, the related benefits for spouses or other dependants.

Bonus declared in respect of, and allotted to, with profits life policies. Once declared it is said to ‘vest’ and is added to the life insurance benefit and the existing bonuses. All vested bonuses become payable under the same conditions as the sum insured. With profits benefits once added are guaranteed.

A qualifying term in a personal accident insurance in regard to the accidental external means’ causing ‘death or disablement’. ‘Violence’ emphasises the insurer’s intention to avoid liability for gradually operating causes of an internal nature. The degree of violence is not of any consequence. The smallest degree will suffice.

Emphasises the importance to the insurer of restricting personal accident cover to bodily cause by accidental external means. Anything which is external is also visible. Exceptions to this strict meaning arise in connection with the accidental taking of poison or the inhaling of gas. If a person consumes poison when they intend to take a prescribed medicine, the act is at least visible and a fortuitous element is involved.

A contract is voidable if one party has the option of treating it as void. If he elects to treat it is as binding, then both parties will be bound. Insurance contracts secured by the insured’s misrepresentation or non-dis closure are voidable at the insurer’s option.
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A contract which may be voided at the option of either party. For example, an insurer may avoid a policy from inception for the misrepresentation or non-disclosure of material facts during the negotiation of the placement, renewal or alteration of cover. A insurer may also avoid a policy from the date of the presentation of a fraudulent claim.
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US, MEDICAL: Insurance agreement that is no longer valid because it was canceled by one or more parties (insured or insurance company).
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(i) A contract which one party can choose not to enforce. (ii) contract of Insurance or Reinsurance in respect of which the underwriter has the right to repudiate liability on the grounds of a breach of good faith by the insured or Reinsured, or in the case of a voyage Policy, where the voyage has not commenced within a reasonable time after the risk was written.

To him who is willing there can be no injury.’ No action in tort is sustainable by a person who has expressly or impliedly assented to the risk, i.e. he cannot enforce a right that he has voluntarily waived. There is no consent when a person acts under a moral or legal constraint or when rescuing a person endangered by a third party’s negligence.
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To him who is willing there can be no injury. If a person voluntarily consents to a risk, he has no right of action against anyone for injuries suffered as result of his actions.