A term that indicates that an insurance should, on expiry, be renewed on its pre-expiry terms.

***

Expression used where it is proposed that an insurance should be renewed on its previous terms.

The terms under which property, e.g. salvage (vessel or cargo), is sold, meaning that it is to be sold at its present location and in its present condition without warranty as to quality or quantity. See SALVAGE VALUE.

Term that denotes that a reinsurance contract will follow the underlying risk. It does not mean following the insurance terms and conditions in their entirety. As original’ serves to define the risk (e.g. period of cover, geographical limits, the nature) so that reinsurers and insurers face exactly the same risk (Pine Top v. Unione Italiana Anglo Saxon). There is a presumption against incorporation into the reinsurance contract of collateral clauses (e.g. jurisdiction clause) from the underlying contract. However, the term is presumed to make warranties as significant to the reinsurance policy as to the insurance contract (Groupama Navigation et Transport & Others v. Caiaiumbo CA Seguros).

Any of the fibrous amphibole and serpentine minerals, especially chrysolite and tremolite that are incombustible and resistant to chemicals. It was formerly widely used in the form of fabric or board as a heat-resistant structural material. Inhalation of asbestos fibres can cause asbestosis or mesothelioma. See CONTROL OF WORK REGULATIONS ASBESTOS 2002. AT

Under the Control of Asbestos at Work Regulations 2002, owners of non-domestic premises contemplating major refurbishment or demolition must arrange a survey sufficient to become alerted to any asbestos that may be disturbed. Guidance on what constitutes a survey is in HSE document MDHS 100.

A characteristic fibrotic condition of the lungs caused by inhalation of asbestos dust or fibres. The disease makes breathing difficult and is often fatal after being latent for between 20 and 40 years. Sometimes the term is used to include all asbestos-related diseases, e.g. mesothelioma intersitial pulmonary fibrosis and bronchial or laryngeal carcinomas. The disease produces long-tail liability claims in employers’ liability insurance and in public liability. See TRIPLE TRIGGER THEORY.

Alternative term for ‘pay as you go’, a method of calculating life insurance risk premiums on a year-byyear basis. Each premium reflects the chance that the policyholder will die in the following year plus an allowance for expenses. It is suitable where term (temporary) insurance is purchased on a year-by-year basis, e.g. as group life cover. The influx of new members helps to stabilise the overall annual cost. The level annual premium system is more appropriate for individual lives.

an independent professional who advises and negotiates on behalf of policyholders on the settlement of their claims.

****

Person who estimates the value of goods for the purpose of apportioning the sum payable by the underwriters to settle the claims. Also called as Surveyor.

The way in which the assets of a pension fund are distributed across a range of alternative investments, such as equities, fixed interest securities or cash. The strategy is based on the fund’s long-term needs but shifts towards particular assets may occur to take advantage of short-term opportunities.

An insurer has to identify assets belonging to him that he maintains for a particular aspect of his business, e.g. separate funds for longterm business. The UK Treasury is empowered to pass regulations that prevent unauthorised parent undertakings of insurers, or others specified by the Treasury, from doing anything (e.g. payment of dividends or creation of charges) that lessens the effectiveness of the asset identification rules (FMSA s.142 (1)(2)).