A method used by life underwriters when charging an extra premium to under average lives. The underwriter adds a number of years to the proposer’s age in order to determine the actual premium that will be charged.

The commission at a fixed or variable rate that the reinsurer pays to the reinsured if the loss ratio is below a specified percentage.

Fire policy clauses covering additional costs such as the cost of removing debris or complying with public authorities requirements. Cover is subject to the adequacy of the sum insured. See PUBLIC AUTHORITIES CLAUSE; DEBRIS REMOVAL CLAUSE.

An optional extension under a business interruption insurance. It allows the insured to incur reasonable additional expenditure to avoid or diminish any further reduction in turnover following a loss even though the amount payable exceeds the loss thereby avoided. Without this extension the insured’s recovery for ‘increase in cost of working’ will not be permitted to exceed the loss of gross profit avoided by such expenditure. The extra cover is for a specific sum.

The earnings-related part of the pension scheme. It is additional to the basic state pension. The current additional scheme, the state second pension, replaced SERPS in April 2002.

An extra charge made by the insurer for improving the cover, changing the risk or extending the period of insurance, or under an adjustable policy where the record shows that the actual activity exceeded the initial estimate.

Voluntary contributions by pension scheme members to boost their eventual retirement income. Tax relief on AVCs is subject to the normal limits, but they cannot be commuted to a taxfree lump sum. AVCs are ‘in-house’, or set up as an FSAVC (free standing AVC) from a provider of the individual’s choice. See HEADROOM CHECK.

A clause applicable to certain aviation hull insurances under which the cover is automatically extended to include further aircraft owned or operated by the insured of the same type and value of the aircraft already insured.

At common law an employer must take reasonable care to provide adequate plant and machinery and see that it is properly maintained. This includes the provision of protective devices and clothing and, where appropriate, a warning or exhortation to use such equipment. The employer may also have to take account of any special disabilities of the workman (Paris v. Stepney B.C. (1951)). Under the Employers’ Liability (Defective Equipment) Act 1969 the employer is strictly liable for injury caused by a latent defect in a tool, even though the fault is that of the manufacturer. See PUWER.

A quasi-arbitration where a neutral adjudicator issues an award or decision, binding on the parties, unless unenforceable by the court or an arbitrator. The Housing, Grants, Construction and Regeneration Act 1996 provides a compulsory adjudication scheme in most construction contracts to resolve disputes on an interim basis, to minimise site delays. The adjudicator reaches a decision within 28 days of referral. The decision is binding unless the dispute is finally decided by agreement, or until, on occasions only, there is a fresh hearing by litigation or arbitration. Otherwise the court intervenes if the losing party refuses to honour the adjudicator’s decision. See ALTERNATIVE DISPUTE RESOLUTION.
******

MEDICAL, US:

Process of the final determination of the issues involving settlement of an insurance claim as payable, partially payable, or denied; also known as claim settlement