A government body which, with its licensees, incurs a strict liability for injury, loss or damage arising from the operation of nuclear establishments. See NUCLEAR PERILS.

In regard to the policy it means its inception, i.e. coming into force. In regard to legal liability, liability attaches when a party is legally responsible for some injury, loss or damage to a third party.

The date on which the risk attaches, i.e. begins to run.

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.