If there is a breach precedent to the policy, insurance policies are void or voidable “ab initio,” i.e. from the beginning (Latin).

Also see: Utmost Good Faith.

A type of contingency insurance that protects event promoters (e.g. cricket matches, fairs, and exhibitions) from financial loss due to cancellation, abandonment, interruption, rescheduling, or postponement caused by circumstances (fires, storms) beyond their control.

Sometimes the cover includes judicial intervention that results in abandonment.

There is also non-appearance cover available.

Only irrecoverable expenses/loss of revenue are covered by the insurance policy if an event/exhibition/match is cancelled/abandoned due to perils covered in the RSMDT clause, such as:

fire, lightning, explosion, earthquake, storm, cyclone, typhoon, tempest, hurricane, tornado, flood, inundation, rain, riot, strike, civil commotion, malicious damage, and terrorist act.

Coverage under a fire policy may be provided for properties such as furniture, tents, and stalls for which the insured is responsible or owns.

Separate public liability coverage may be provided for event visitors/spectators against death/injury. However, no liability will attach under this policy in the following circumstances:

• Once a ball is bowled in the event/once the exhibition is inaugurated.
• If one or more of the teams refuses or is unable to participate in the event.
• If the insured cancels or abandons the event on their own initiative.
• The event’s postponement to a later date or a different venue shall not be considered a cancellation and/or abandonment of the event, and thus no claim shall be made under the policy.
• As a result of a government directive, the insured event is unable to take place.

A method for determining whether the benefits paid by an approved money purchase pension scheme exceed the limits set by the Inland Revenue.

An agreement between insurers and credit organisations concerning the provision of replacement vehicles to uninvolved third parties and, where appropriate, the completion of repairs. Insurers agree to pay credit hire organisations (CHOS) certain fixed rates plus certain other costs for the supply of replacement cars, and CHOs agree to supply vehicles. The agreement streamlines the process of innocent third-party claims for uninsured losses and simplifies negotiations between CHOs and insurers.

The Association of British Insurers (ABI) has agreed that its members may not request genetic tests from insurance applicants. Until November 2006, applicants could apply for up to £500,000 in life insurance and £300,000 in health insurance without disclosing the results of previous predictive genetic tests. Above those thresholds, insurers require the results of any prior tests that have been specifically approved by the Genetics and Insurance Committee. The only test that has been approved (since June 2003) is for Huntington’s disease. Other tests may be added in the future and will be listed on www.abi.org.uk.

A rate quoted by an insurer to a broker, which makes no allowance for commission. The broker charges his client a fee.

In extended warranty insurance, absolute net rates are frequently quoted.

After deducting all reinsurance recoveries, the amount of a loss that the reinsured retains net for its own account. A reinsurer may compel the reinsured to keep a minimum amount so that subsequent reinsurance purchases do not leave the reinsured with a purely nominal interest.