Fallback cover that does not replace a primary cover but is triggered if the intended primary cover is non-existent or ineffective. An employer normally relies upon an indemnity under the employees’ car insurances, when employees use their cars on his business. If an employee’s policy is invalid, the employer’s indemnity fails but the motor contingent liability section of his public liability policy fills the gap. Others who need contingent liability cover include principals relying on cover arranged by contractors and hire car operators relying on insurance arranged by hirers.

A form ofcontingent capital giving the (re)insurer the right to issue debt to investors or a bank if specified events take place although the arrangement may be unconditional. CSNs are equivalent to overdrafts and ensure the solvency of the (re)insurer in times of high claims.

Institute Time Clause/International Hull Clause by which the vessel is held covered until arrival at her destination should she be at sea or a port of distress, at the time the policy expires. It rarely applies as the succeeding policy comes into operation immediately at the expiry date.

Occupational pension scheme offers members who leave the scheme the opportunity to continue any life insurance benefit they were entitled to as members of the scheme. An ex member is able to effect cover without producing evidence of health within a limited period.
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An option in a group health insurance for an individual leaving the group to maintain insurance in respect of himself.

The revival or continuation of the precontractual duty of utmost good faith. The duty may be revived by policy conditions in regard to defined changes in risk or situations calling for fresh information as when cover applies under ‘held covered’ clauses. Where the change goes to the root of the contract, the insurer may come off risk, so the duty revives if the insurer is to continue the policy with a newly defined risk. The duty revives at the renewal of a contract. In addition good faith, meaning an absence of fraud, applies in the matter of claims.

A warranty whereby the insured promises that a state of affairs will exist for the duration of the policy, e.g. disposing of waste at the end of each day. The policy is voidable from the date of the breach unless the court interprets the insurer’s words as being insufficient to amount to a continuing warranty, preferring to classify the words as a description of risk clause.

When a member leaves his occupational pension scheme but keeps his benefits in the fund, and subsequently resumes membership, the periods of service before and after the break may be aggregated. Aggregation also occurs when an employee moves from one employer to another employer in the same scheme.

A reinsurance contract that, once incepted, continues indefinitely until one of the parties gives notice of their intention to terminate the arrangement. Cancellation may be on a cut-off or run-off basis.