Declaration by a life insurer as to the rate at which bonuses will be allotted to ‘with profits’ policies. The periodic declarations are usually annual and the amount declared depends on the insurer’s decision as to the amount they wish to take from profit as divisible surplus. See NO CLAIM BONUS.

The amount added to a life insurance premium to distinguish ‘with profits’ policies from those without profits. The higher payment entitles the policyholder to participate in any divisible surplus available for bonus distribution at any bonus valuation.

A reserve created by life insurers for the payment of future bonuses to with profits policyholders.

A type of gross premium valuation that allows explicitly for future bonuses under with profits contracts. The terms bonus reserve valuation and gross premium valuation are regarded as alternative phrases. For some purposes (certain solvency investigations) a gross premium technique will be used with no allowance for future bonuses.

The sacrifice by an employee of all or part of his bonus payment. His employer pays an equivalent amount into an executive pension plan for the employee.

A motor insurance system that gives discounts for claimsfree driving and makes surcharges for claims. See NO CLAIMS BONUS.

Insurance against inability to collect money owing, following the destruction of books by an insured peril. Cover includes the cost of reproducing records and tracing debtors. Bad debts, being a credit risk, are not covered. The sum insured is the estimated maximum debt outstanding at any one-time subject to average and the premium is adjustable at the end of year. As book debts relate to preinterruption transactions they are not covered under business interruption insurance.
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Insurance against loss through inability to collect debts due because accounting records have been destroyed.

A pension scheme under which the employer is responsible for the payment of the benefits that are financed by a provision in the employer’s accounts.

Lists of premiums and claims prepared monthly or quarterly by cedants or coverholders for reinsurers or underwriters to advise them of risks accepted and claims incurred under treaties or binding authorities. Bordereaux are not always required in reinsurance treaties.
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A list of premiums payable and claims paid or due which is prepared by a coverholder for a managing agent or by a reassured for its reinsurer. Bordereaux are commonly produced on a monthly or quarterly basis. They breakdown block premium payments that are made to underwriters and detail claim payments made on behalf of or due from underwriters.

a method of claims reserving for general insurance, similar to chain ladder technique, which involves setting an initial expected loss for the class of business.