Covers the risk of the unsuccessful litigation. Cover is arranged after the insured becomes aware of the need to litigate. The insurance pays both the party’s own and opponent’s fees and disbursements (e.g. expert reports) if the action is unsuccessful and the insured is ordered to pay them or fails to recover them from his opponent. The insurance is marketed as a conditional fee agreement insurance. Both Sides Insurance, an alternative, is not linked to conditional fees. It pays both sides’ legal fees and disbursements regardless of the outcome of the action. Proposals forms call upon the insured’s legal representative to confirm a minimum 65 per cent chance of success. The successful insured can, at the court’s discretion, recover his AEI premium from the loser.

IR rule allowing members of defined contribution pension arrangements to defer the compulsory purchase of an annuity until age 75. During the deferment period the member may take ‘income drawdown’ within prescribed limits.

The age last birthday of a proposer for life insurance.

Payment made by the IR National Insurance Contributions Office to an appropriate scheme, contracted out money purchase scheme or contracted out mixed benefit scheme from April 1997 for members who have contracted out. The payments increase with the age of the member.

A captive insurance company formed in the US by insurance agents singly or in groups to insure selected risks from their own accounts.

The authority to act on behalf of his principal. An insurance broker may act at one time for the insured (i.e. placing insurance as instructed) and at other times for the insurer, e.g. collecting the premium. In order to determine who is bound by the agent’s act it is necessary to ascertain for whom he was acting in regard to the relevant issue. An agent’s authority may be express as when acting on specific instructions or it may be implied (actions taken in accordance with prevailing custom) or apparent (or ostensible) authority (actions based on appearances). Where the agent acts without authority and the principal becomes obligated the agent may be liable to his principal. See IMPUTED KNOWLEDGE.

A person is guilty of this offence if he commits any burglary and at the time has with him any firearm or itation firearm, any weapon of offence or any explosive (Theft Act 1968, s. 10).

in a reinsurance policy, the aggregate amount that the insurer must retain before anything is paid by the reinsurer; for example £200,000 XS £100,000 with an aggregate retention of £500,000 means that a £150,000 loss would erode £50,000 of the aggregate; once the aggregate has gone, the reinsurance policy begins paying out, subject to the excess.

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Total (limit of indemnity, premium, retention etc).

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The greatest amount recoverable on account of a single loss or during a policy period, or on a single project.