A block or master policy under which a large number of buildings, mainly private dwellings, are insured on a ‘householders’ comprehensive’ basis. The buildings insured at any one time are those listed in a schedule maintained by the society. Individual property owners are not given a policy but are supplied with full details of the cover. The insurance is index-linked.

Where a mortgagee grants a high loan in relation to value (e.g. in excess of 75 per cent of property price) the mortgagee insures the excess against loss due to borrower default. The premium, known as the ‘high value to loan’ fee or indemnity guarantee premium, is passed on to the borrower.

An alternative to a conventional ‘with profits’ policy. The investment element of the premium is concentrated in designated building society investments.

1. In household policies it is the home (the dwelling, outbuildings and garage), fixtures and fittings, patios, terraces, footpaths, tennis courts, drives, walls, swimming pools, fences, gates, hedges, service tanks, pipes, permanently connected cables and central heating oil tanks, within the boundaries of the home. Trees and plants are not included unless the policy has been extended to cover damage to garden. 2. Under the standard fire policy used by businesses, buildings are defined as: buildings including the landlord’s fixtures and fittings therein and thereon, unless otherwise stated constructed of brick stone or concrete and roofed with slates tiles metal concrete asphalt or sheets or slabs composed entirely of mineral ingredients. Unless specifically insured, Buildings includes annexes, small outside buildings, conveyors, wires, service pipes and other equipment that is the property of the insured (or for which he responsible), walls and gates and fences. incombustible

The transfer of a group of members from one occupational pension scheme to another. A transfer payment is made to the new scheme based on the transfer of assets and liabilities. The transfer may occur when members of a closed final salary scheme are given the chance to join a new money purchase scheme. More usually it occurs when the business changes ownership. The consent of the members is required as they could opt for a pension transfer to a personal pension, a section 32 policy or no transfer at all. The transfer payment usually exceeds the individual’s cash equivalent transfer value.

The onus is upon the insured to prove that his loss is within the operative clause. It is for the insurer to prove that the loss has been caused by an excepted peril. If the insurer has cut down the scope of the operative clause by qualifying the insured peril (see QUALIFIED PERILS) the insured must prove that the loss was caused by the peril as qualified.

UK: According to the Theft Act 1968, a person is guilty of burglary in two circumstances. Section 9(1)(a) applies when a person enters a property as a trespasser, with intention to commit theft, rape or grievous bodily harm. Section 9(1)(b) refers to the person who enters property as a trespasser and, having entered, commits or attempts to commit theft, rape or grievous bodily harm. Insurers avoid the use of the term ‘burglary’ in theft insurance. The usual practice is to insure theft, ‘following forcible and violent entry into or exit from the premises’.
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US: Breaking and entering into another person’s property with felonious intent.
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Coverage against loss as a result of forced entry into premises.
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US: Theft of property from within a premises by a person who unlawfully enters or exits from the premises.
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Theft of the property following felonious entry into the premises by violent and forcible means, or theft by a person in the premises who subsequently breaks out by violent and forcible means. The use of force and violence need not be against property only-it can also be against the person or an individual.
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Unlawful removal of property from premises involving visible forcible entry.

A term sometimes used in aviation insurance to describe a policy covering potentially exceptional risk situations, as with helicopters, etc.

UK: a method of calculating the premium in non-proportional reinsurance, in particular excess of loss and stop loss reinsurance, whereby the premium is directly related to the insured’s claims experience; the reinsurer reviews the cedant’s claims experience to ascertain what proportion of premium income would have been “burned up” by the reinsurance claims (see also Swing rated policies).
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REINSURANCE: A term most frequently used in spread loss property reinsurance to express pure loss cost or more specifically the ratio of incurred losses within a specified amount in excess of the ceding company’s retention to its gross premium over a stipulated number of years.
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UK: Premium calculation method used for non-proportional reinsurances mainly or large industrial liability risks. The premium is calculated from the percentage of premiums ‘burnt up’ by losses in the reinsurance layer or primary insurance over a number of previous years. The calculation is adjusted for inflation and other factors subject to change and the final figure is loaded, e.g. by 100/70, for administrative costs and profit. The premium is normally adjustable based on actual experience.

A liability insurance condition to ensure that the burning of debris away from the insured’s premises is properly conducted. Fires should (a) be in a cleared area and at a distance (e.g. at least 8 metres) from any property; (b) not be left unattended. A suitable fire extinguisher should be kept available for immediate use. It may also require that fires be extinguished at least one hour before leaving the site at the end of each working day.