The largest futures exchange in the US. CME offered the world’s first exchangetraded weather derivatives based on 10 US cities in 1999. By 2003, the number increased to 15 to include five European cities (Amsterdam, Berlin, London, Paris and Stockholm.) (www.cme.com).

Life policy under which, until the agreed ‘vesting age’ (e.g. 18), the premium is paid by the parent. At ‘vesting’ the child takes over the policy on a whole life or endowment basis in his own name at the insurer’s normal rates regardless of health. Alternatively the child may take the cash sum or defer the benefits. If the parent dies before the ‘vesting age’ premiums are suspended until the child takes over the policy.

The separation of key functions of a business to ensure that no conflicts of interest arise, and to prevent the inappropriate transfer of sensitive or regulatory information to another part of the business.

The International Convention on Carriage of Goods by Rail (CIM) establishes a measure of uniformity in Europe. It is necessary in the case of rail imports or exports involving the UK to incorporate the terms of the convention into the contract of rail carriage as shown by the consignment note. The carrier’s liability is similar to that of CMR.

The sale of a contract struck on one city against the purchase of another contract struck on another. It is a means of hedging against the weather risk.

Implements Council Directive 94/56/EC and the fundamental principles governing the investigation of civil aviation accidents and incidents. Also re-enacts the 1989 Regulations. The Inspectors of Air Accidents of the Air Accidents Investigation Branch of the Department of Transport are identified as the investigating body. The Chief Inspector can delegate investigation to another member state, or, in some cases, to a state that is a party to the Chicago Convention. An inspector’s report must be published and any safety recommendations in the report are not to create a presumption of blame or liability.

Sets out duties, functions and objectives of the Civil Aviation Authority. Deals with aerodromes, the regulation of civil aviation and the design, construction and maintenance of aircraft. Protects aircraft operators against trespass and nuisance claims whilst engaged in ‘normal flight’. Section 76 imposes a strict liability in respect of loss or damage on water or land when an article, person or animal is caused to fall from an aircraft during flight, take-off or landing. The loss is recoverable from the aircraft operator.

Operates under the Civil Aviation Act 1982 (amended 1996). Responsibilities include air safety and registration of aircraft. Issues Air Operators Certificates to those who can demonstrate their competence to run an aircraft safely and show that they are adequately financed and insured for passenger and third party risks. CAA collaborates internationally on air safety.

The life or personal accident term for the extra risk due to a proposer engaging significantly in flying as a passenger or as a pilot in private aircraft.

UK: A risk excluded under the standard fire policy and other property insurances along with riot and similar perils. It means the severe and prolonged disturbances by people ‘out of hand’. Civil commotion is an intermediate state between a riot and civil war. An element of turbulence or tumult is essential. Riot and civil commotion can be insured as additional perils. The insurer imposes strict time limits for the notification of claims.
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Damages by riot or civil commotion or caused maliciously by strikers or persons acting in connection with political organization. Civil commotion is disturbance between large number of individuals in a community frequently associated with damage to private and public property.
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One of the extended coverage perils, paired with the peril riot, that refers to a less widespread or generalized event than riot might be thought to encompass.