1. Under the FSA’s Conduct of Business rule 6.7, it is the period allowed to a customer following his receipt of the statutory notice during which he may cancel his investment agreement. The period allowed in the case of life policies, pension contracts, appropriate personal pensions and other cancellable investment agreements varies between 14 and 30 days (www.fsa.gov.uk). 2. Periods of reflection are also allowed under the Consumer Protection (Distance Selling) Regulations, and this has implications for those selling insurance over the Internet and by other distance methods. 3. The cancellation rights of retail customers buying general insurance products are contained in Chapter 6 of the FSA’s Insurance: Conduct of Business Sourcebook. ICOB allows 30 days for pure protection contracts and 14 days for general insurance.
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A period during which one has agreed to enter into a transaction such as a health insurance agreement may withdraw without penalty.

A weather risk term covering May to September. The contract period for a weather derivative is generally based on one season or a full year.

A member’s agent who coordinates the administration of any particular member’s affairs at Lloyd’s where that member has more than one member’s agent.

Loans to corporate entities based on a fixed rate for a fixed period. Bonds can be traded and the price usually changes when there is a change in prevailing rates of interest rates. Corporate bonds carry a higher risk than government stock (gilts) but are lower than shares as a company must pay off all debts before paying shareholders.

System by which companies are run and the means by which they are accountable to their shareholders, employees and the regulatory authorities. Directors are expected to run companies soundly and prudently. See COMBINED CODE OF CORPORATE GOVERNANCE; TURNBULL REPORT.
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A system specifying the division of duties, rights, and responsibilities among various participants in a corporation, such as the board of directors, the various committees within the board of directors, operating managers, and shareholders. Corporate governance enumerates the rules, guidelines, and procedures for making decisions affecting corporate affairs. The term has received particular attention in recent years because of massive lawsuits against the directors and officers of a number of high-profile corporations that filed for bankruptcy. Many business commentators, as well as insurance industry observers, believe that a breakdown of corporate governance, especially in the area of financial and accounting controls, was largely responsible for such failures.

Core Principles Byelaw (no. 34/96) requires honesty, transparency and integrity from managing and members’ agents. The agencies are also subject to the FSA’s Principles of Business that correlate closely with Lloyd’s Core Principles. The board of a managing or members’ agent must ensure that the business is accountable to the FSA and follows the Lloyd’s Core Principles. Principle 9 emphasises the need for adequate management controls. The Lloyd’s Code for Sound and Prudent Management requires that each agent is directed and managed by a sufficient number of persons who are fit and proper for the positions they hold. Sound and prudent management embraces direction and management; staffing; supervision and accountability; and compliance.

an underwriting member of Lloyd’s that is not an individual member; under Lloyd’s rules a corporate member may be a company, a Scottish limited partnership or a limited liability partnership.
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Company admitted to membership of Lloyd’s.

Lloyd’s syndicate with a single corporate member.

HSE enforceable regulations to protect workers from substances hazardous to health. Substance means any solid, gas, fume, dust or vapour and any micro-organism. The employer must, inter alia, assess, monitor and control each work situation to ensure that workers are not exposed to possibly harmful amounts of any substance connected with the work. COSHH sets out limits for a large number of hazardous substances based on maximum exposure limits and occupational exposure standards. The employee has a duty to cooperate with the employer regarding monitoring and health surveillance.

Same as Cost, Insurance and Freight except that the cost of insurance is borne by the overseas buyer.