The monitoring of any actual or potential accumulation of risk (e.g. number of properties in a locality exposed to the same loss event, e.g. flood) in order to ensure that underwriting capacity is not exceeded and/or adequate reinsurance or suitable co-insurance is arranged.

insurance term referring to the accumulation of a single premium of 1 over a period of time taking account of the interest the premium will earn and the probability of the insured surviving.

A combination of hazardous risk factors affecting an insured risk, e.g. poorly constructed building, hazardous trade or poor claims experience.

Non-profit insurance association that facilitates the development use of global insurance standards for insurance-related financial services industries. ACORD is committed to improving efficiency and expanding market reach by reducing costs; reducing duplication of work and ambiguous communication exchanges; improving accuracy; facilitating e-commerce; and supporting multiple distribution models. WISE ceded the promotion of electronic data standards to the organisation in July 2001. ACORD has offices in New York and London. Visit www.acord.org.

Third party motor insurance policy issued by an authorised insurer under which the cover is limited to the minimum cover required to comply with the compulsory requirements of the Road Traffic Act 1988, s. 145.

A personal action dies with the person,’ meaning that, at common law, a right of action in tort ceases on death of the claimant or defendant. Following the Law Reform (Miscellaneous Provisions) Act 1934, causes of action survive death and keep claims alive on both sides. Liability insurers grant an indemnity to a deceased insured’s legal personal representatives.

Actual statements that convey false or misleading information relating to a material fact. Innocent misrepresentation is the unintentional misrepresentation of a material fact; fraudulent misrepresentation is deliberate. See Utmost Good Faith.

Occurs when pension funds are used to purchase and sell particular investments to secure growth above the level of a chosen benchmark.

A current employee of a pension scheme engaged in building up pension benefits in an occupational pension scheme. During a contribution holiday a member may still accumulate extra pension benefits without payments into the scheme.

Group life or health policy term requiring a new member (or a member increasing cover) to be at work or on holiday on the day of joining or increasing the cover, and not absent due to sickness or industrial action. Cover may begin on the employee’s return to work, either automatically or with the insurer’s consent.
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Some group health insurance policies stipulate that if an employee is not actively at work on the day the policy goes into effect, the coverage will not begin until the employee return to work.