The effect of demand for a product or service on revenue. Energy sector sales fall during warm winters regardless of price. Heating fuels are bought because it is cold not because prices are low. Weather derivatives are used as a hedge against the volume risk.

Following Henderson v. Merrett Syndicates Ltd (1994), this test has been accepted as the correct basis of liability where issues of a duty of care and economic loss arise as they do in professional negligence cases. The giving of advice and providing a service call of a duty of care when the party concerned assumes or undertakes a responsibility to another. In this case the managing agents at Lloyd’s owed a duty of care to names who had suffered disastrous financial losses following the negligent management of the syndicates.

Issued by an FSAVC scheme to the member as evidence of his membership and contributions to the IR.

An excess for which the insured volunteers in order to get the benefit of a reduced premium.

Pension, life insurance or other benefit schemes in which the members select the type and level of benefits they require from the range available. The members pay the contributions and premiums. The collective nature of affinity groups and trade unions means the members get better terms than they would as individuals.

Marine policy covering the subject-matter from the port of departure to destination irrespective of any time element. In practice the Institute Cargo Clauses (Clause 8 the Duration Clause) includes a time element by a provision to extend cover to up to 60 days after discharge from the vessel.
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A marine Insurance Policy to cover a specific voyage. Also, a clause in Ocean Marine policies specifying the period of tie of the number of trips that may be grouped together as one voyage.

A policy effected without insurable interest is a wager, but policy proof of interest policies (PPI) are used in practice. The Life Assurance Act 1774 enacts that all policies shall be null and void if the insured has no interest (see insurable interest) in the event insured against or if made by way of wagering or gambling.

Wages may be insured under business interruption insurance as an unspecified working expense or left uninsured as a specified working expense. Wages are also a key variable in employers’ liability and other adjustable policies. See and compare PAYROLL COVER; DUAL BASIS PAYROLL.

The uniformed staff of the Corporation of Lloyd’s, who perform general duties, wear red gowns and are known as ‘waiters’ reminiscent of the coffee house from which Lloyd’s originated.

1. The prescribed amount of time, e.g. 30 days, following the issue of the policy that must pass before the policy will respond to an insured event. Income protection policies eliminate any disability due to sickness that commences during the waiting period. Disability commencing subsequently will be covered under the policy’s normal terms that will generally include a deferred period. 2. The period of employment that must elapse before a new employee can join his company pension scheme or group life scheme.
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A period of time set forth in a policy which must pass before some or all coverages begin.
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Specified period of time which must elapse after inception of Policy before benefits provided by certain Insurance policies become payable.
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The duration of time between the beginning of an insured person’s disability and the start of the policy’s benefits. Also called elimination period.