An agreed percentage increase applied to the total invoice plus freight for unknown expenses at the time of shipment and also for a portion of the insured’s profit.

Option at retirement whereby the individual’s pension payment (monthly, quarterly or some other period) may be payable at the beginning or end of the relevant period. Payments in advance attract a small cost.

Similar to a performance bond. It safeguards the principal, who has made advance payments to the contractor, against loss due to poor performance or default by the contractor.

A form of business interruption insurance relating to a new business or a new activity for an existing business. It covers loss of gross profit following delay consequent upon damage insured under a contractor’s all risks or erection all risks policy. The delay in starting the activity may be due to damage to: (a) the new works, extension or machinery; (b) suppliers’ premises; (c) machinery in transit. The indemnity period commences on the date production was intended to start and continues until it does actually start, but any increase in cost of working is calculated from the date of loss.

Cover for a property owner against loss of rental income due to an insured event delaying the letting of his property. The sum insured is the annual rent multiplied by the number of years representing the maximum delay period. A loss is measured by the rent that would have been paid by the tenant during the period of delay.

System that may be used for underwriting members of group schemes. Once a group member has been accepted at ordinary rates he becomes entitled to increases in cover up to a pre-arranged percentage without further evidence of health or underwriting scrutiny. Also called guaranteed insurability.

The CII’s ‘professional’ qualification awarded to experienced and expert market practitioners. Candidates can choose from 46 modules each attracting a designated number of credits. Successful candidates achieve a 290 credit threshold at the culmination of which they will have an enhanced understanding of insurance practice both in terms of technical subjects and overall management skills. Holders are entitled to use the designation ACII and apply for a Chartered title and in due course proceed to Fellowship status.

CII qualification that gives financial advisers a broad understanding of the core disciplines needed to give high quality financial advice. The wide subject choice includes two FSAapproved subjects for regulatory compliance purposes. Pensions (G60) is an approved qualification to be held by a nominated person in a firm that carries out pensions transfer and opt-out business. Investment portfolio management (G70) is a recognised examination for fund management and certain other investment advice activities.

A retrospective financial reinsurance providing cover for past losses that exceed loss reserves and loss portfolio transfer contracts on losses that are incurred but not reported (INBR) and the development on reported losses (IBNER). The premium reflects the net present value of the expected future ceded loss payment and a risk premium in respect of underwriting, timing and investments. The main benefit is that cover facilitates mergers and takeovers by removing the risk of adverse loss developments for the acquiring company.

Comprehensive contingency insurance for an agency and its client when a film or campaign is interrupted or abandoned due to a cause beyond the control of the agency or its client.