Policies where, at inception, the insured estimates the size of the risk in terms of a key variable such as turnover or wages as in employers’ liability insurance. The premium is based on this estimate but adjusted up or down at the end of the year when the actual figure is declared by the insured. Any return made to the insured is subject to a minimum premium.

The cash equivalent transfer value, worked out in the prescribed manner (the Welfare Reform and Pensions Act 1999), to establish a member’s pensions rights on divorce. The CETV is a lump sum value in current terms of the rights accrued within a member’s pension scheme.

The initial indemnity limit under a reinsurance contract minus the losses paid during the current contract period. It is the amount of cover remaining unless reinstatement applies.

an independent professional individual who is engaged by insurers to settle large or complex claims.

An additional premium payable under the terms of the contract as a result of claims experienced under a policy of insurance or reinsurance.

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An additional or return premium that is payable in relation to a deposit premium depending on the performance of an insurance or reinsurance contract.

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The adjustment premium is a further premium payable at the end of a period of cover. This may result from the use of retrospective experience rating or from a situation where the exposure cannot be adequately determined at the start of the period of cover.

An Act compelling the courts to award interest on damages for personal injuries for the period from date of service of claim to the date of judgement at a standard rate. Interest is only awarded on those cases that proceed to court and payments into court should include interest.

Section 1 abolished the right to damages for loss of expectation of life while s.3 replaced it with an action for bereavement by close relatives by amending the Fatal Accidents Act 1976. Section 4(2) abolished claims for a deceased person’s ‘lost years’, i.e. no claim for loss of the deceased’s income after the date of death. Section 2 abolished action for loss of services. Section 5 lays down that maintenance provided at public expense is to be taken into account in assessing personal injury damages. Section 6 allows, where the claimant’s condition may deteriorate, for the award of provisional damages and a subsequent further award where deterioration actually occurs.

Life reinsurance under which closed blocks of business from both active and inactive primary insurers are accepted by reinsurers. It allows the primary insurers to realise value and release capital as well as ease their administrative constraints.

An asset, under rule 4.1(3) of IPRU (INS), that be may brought into account in determining the value of an insurer’s net assets for margin of solvency purposes. Goodwill and stock-in-trade, for example, are not admissible assets and certain assets are admissible only to a specified extent. See ASSET VALUATION RULES.