Created by insurance interests and the government, it helps employees/former employees trace the employers’ liability insurer on risk at the time their long-tail liability was caused. The employer may have ceased trading or insurance records may not exist or be inadequate. The Code requires insurers to maintain records to improve access to information. Insurers must state how their records can be searched, keep all records for 60 years, appoint a designated contact to handle enquiries, meet prescribed timescales and state annually that they have complied with the Code. There are two versions of this voluntary Code the ABI Code for Insurance Companies and the NMA Code for syndicates at Lloyd’s.

An uninvited personal visit or oral communication. They are allowed for life insurance, unit trusts and personal pensions but the caller must present a business card stating his name, position, firm’s name and address and the FSA authorisation logo. Telephone calls must not be made at an unsociable hour and no misleading information given. The caller must make it clear to the client that he will be entering into a contract for the purchase of investments. No undue pressure may be used.

An explosion caused by the sudden release of pressure as in the case of a ruptured steam boiler. The risk is generally covered under boiler and pressure plant policies but cover exists under the standard fire policy for damage caused by explosions (including hot explosions) of domestic boilers.

A construction/demolition term referring to damage to property caused by the removal or weakening of support accorded to any land, building or structure. The risk is excluded under the liability sections of contractors’ all risks and erection all risk policies but can be bought back subject to a hefty excess and the exclusion of the contract works.

Combination of put options and call options used, for example, by energy producers and end users to hedge against extreme price movements by keeping price within a defined range. The downside risk is limited at the cost of the upside potential. If price falls below the ‘floor, the end user pays the energy company under the contract. If the ceiling’ is exceeded the energy company pays the end user.

Registered friendly societies which operate almost exclusively in the field of industrial life insurance.

Unit trust and similar schemes that provide for the collective holding, management and investment of a pool of assets from which the earnings or gain on disposition are shared among investors. These attributes are reflected in the definition of a CIS set out in FSMA, s.235(1). A distinct characteristic of UK schemes is that they are based on the concept of trusts. An open-ended vestment company (OEIC) is a CIS.

A life insurance effected by credit companies to cover the loans they have advanced. The benefits are payable on death. This policy is distinguished from group life policies effected by employers or affinity groups.

1. A single policy on behalf of several co-insurers (see coINSURANCE). 2. A fidelity guarantee policy embracing a number of employees with a separate amount guaranteed for each.
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(i) A policy issued on behalf of a number of insurers (ii) A policy in respect of a number of persons with insurance in respect of each separately.