The point at which the liability of an excess layer insurer or reinsurer is triggered. The reinsured may carry losses up to £1m with the reinsurer carrying the excess up to £3 million. £1 million is the attachment point, otherwise called the excess point.

A prospective benefits funding method for pension schemes in which the actuarial liability makes allowance for projected earnings. The standard contribution rate is the rate that, if payable over the expected future membership of the active members, would generate their expected benefits related to future service. The value of their future service is treated as the difference between the value of total benefits and the value of past benefits calculated by the project unit method. This means that the attained age method and the projected unit method have the same actuarial liability but different standard contribution rates.

A form of cover available under legal expenses cover and certain liability policies. It provides a financial benefit to defray the cost of time lost by the insured and employees having to attend court or tribunal as defendants or witnesses on behalf of the insured. The amount payable is based on a stated fraction (e.g. a 250th part of the person’s annual salary) for each day’s absence or is a fixed amount per day.

The final part of a policy signed by certain officers of the insurance company according to the Deed of Settlement or Memorandum and Articles of Association by which the company is constituted and business transacted. Also known as the Signature Clause.

the FSA’s Authorisation manual.

A firm with FSA permission to effect and carry out insurance contracts (other than a bank). See AUTHORISATION.

A person who has been authorised by the FSA to have a Part IV permission of the FSMA to undertake one or more of the regulated activities. Persons must meet the threshold conditions detailed in the Threshold Conditions Manual. Insurance applicants must be a body corporate excluding limited liability partnerships, registered friendly societies or members of Lloyd’s.

Professional firm that is an authorised person and therefore has a Part IV permission from the FSA to carry on one or more regulated activities. When undertaking non-mainstream regulated activity, APF exemptions apply.

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UK: exemptions The disapplications and modifications of the FSA’s Handbook that apply in respect of APFs when undertaking non-mainstream regulated activity.