One of three classes of use (class 2) often used by motor insurers in fixing car insurance premiums. The policy covers social, domestic and pleasure use and business use. It excludes commercial travelling and carrying passengers for hire or reward but car sharing is allowed as long as ‘lifts’ where money changes hands are not part of a business arrangement. This limited business class is more costly than Class 1, where the business use element is limited to the policyholder in person, but lower than Class 3 which includes commercial travelling as defined in the policy.

A test to help determine whether the claimant’s injury was in fact caused by the defendant’s negligence. It assists the court in rejecting those factors that could not have had any causal effect and should therefore be regarded as being too remote. ‘If the damage would not have happened but for a particular fault then that fault is the cause of the damage; if it would have happened just the same, fault or no fault, the fault is not the cause of the damage’ (per Denning L.J. in Cork v. Kirby Maclean Ltd (CA, 1952). The test does not work when there are two concurrent causes each of which is sufficient to cause the damage. The test would eliminate both causes and that cannot be correct, as both could have produced the result.

1. A payment to reinstate a contracted out person into the state second pension. 2. Reinstatement of life insurance cover after payment of a critical illness claim that would terminate the policy unless the death risk is bought back. 3. The payment of additional premium to secure cover in respect of a risk (e.g. motor cycling under a personal accident policy) specifically excluded from the cover.
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In the context of general insurance this refers to the purchase of cover in respect of an otherwise excluded peril by means of the payment of additional premium.

The policy bought by pension scheme trustees to transfer an individual’s accrued benefits to a standalone insurance policy. Unlike a personal pension plan, the policy guarantees that if a transfer payment includes an element relating to contracting out of the state second pension, then a guaranteed minimum pension will be provided at retirement age. Also, unlike a personal pension plan, benefits in retirement from an s.32 policy are subject to maxima based on the limits laid down in the occupational pension scheme from which the entitlement was transferred.

FSMA, s.22, specifies that a selling or administration activity is a regulated activity only if it is carried on ‘by way of business. In effect this means that the activity provides a direct financial benefit to the business. Financial benefit need not be in the form of money or a profit element. An employer who arranges health cover for his staff but receives no commission does not generally carry on insurance mediation by way of business.

The means whereby the Council of Lloyd’s under s.6 of Lloyd’s Act 1982 lays down the rules of the Lloyd’s community. The term extends to any direction, regulation or other instrument (including any regulation ratified by the Council by special resolution) and any associated condition or requirement. Lloyd’s is expected to give the FSA adequate notice of all proposed byelaw changes affecting supervision and regulation of the Lloyd’s market. The FSA also requires copies of regulatory and market bulletins and all byelaw amendments as soon as they are published. See LLOYD’S MARKET CONDUCT.

The Committee’s recommendations focused on the control and reporting functions of boards, particularly of listed companies, and on the role of auditors. Its purpose was to review those aspects of corporate governance specifically related to financial reporting and accountability. Has impacted upon the Combined Code on Corporate Governance.

Reinsurance experience calculated by matching the total value of all losses and movements in reserves during a given 12month period, regardless of the date of loss, with the premiums earned during the same period. Calendar year statistics are suitable for financial considerations but not for assessing results.

A payment to cover losses and management expenses made by a member of a protection and indemnity club in consideration of a right to indemnity. The ‘calls’ are based on the tonnage entered in the club by shipowners. Initial payment may be followed by supplementary calls.
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The sum payable by a member of a Protection and Indemnity Club for his right to indemnity by the club. A call payable at the outset of each period is termed an Advanced call. Additional payments (supplementary calls) in respect of a period may be made subsequently if required to meet claims arising.

The right, not the obligation, to buy the underlying asset or take cash, based on movements in an underlying index as in a weather derivative. Compare with put option.