1. A practice whereby a pension scheme will offset an amount equivalent to the state pension against a target pension so as to arrive at the amou payable by the scheme. 2. Commission paid to an intermediary for introducing business may be ‘clawed back’ if the policy does not stay in force for a specific period of time. 3. See DELAYED TURNOVER.

The method of transferring premium portfolios and loss portfolio from one year to another in a manner that simplifies the preparation reinsurance treaty accounts when a treaty is cancelled or transferred. See LOSS PORTFOLIO TRANSFER.

Financial loss due to pollution. Costs may include: cleaning up land, water courses, buildings, machinery, etc., and generally removing the effects of pollution. The insured may cover his liability for third party cleanup costs incurred by a third party and for the cost of cleaning up his own property under a first party policy. It is possible to extend existing liability policies but one approach is to arrange a separate environmental impairment policy that also covers cleaning up one’s own site.
***
Generally, those costs associated with the clean-up of pollution.

Accumulated trade waste and rubbish is a fire hazard indicative of lax management and poor moral hazard. Greasy waste is liable to spontaneous heating. In some cases a warranty may require the insured to keep waste/scraps in metals bins and remove them from the building at the end of each day.

FSA rule (Conduct of Business 4.2.7 R) requires a firm intending to conduct designated forms of investment business with UK private clients to enter into a client agreement. The client must sign the terms of business or he must have consented to them in writing.

Authorised firms are bound, unless risk transfer applies, by the FSA to segregate all client money on a daily basis in accordance with the client money rule 4 in the Client Asset Sourcebook for designated investment business and rule 5 for general insurance. For investment business this means segregating money belonging to the client held either as free money or settlement money. For general insurance, client money usually means premiums received from a customer but also covers return premiums and claims money if received for the client. Money received by general insurance intermediaries, other than under a risk transfer agreement, must be segregated in a statutory or non-statutory trust meaning the money is ‘ringfenced’ and therefore beyond the reach of the intermediary’s creditors.

Research to ensure that new vaccines, drugs, treatments, etc., are safe and effective. Participants must be advised of their rights to compensation in the event of consequential injury, illness or impairment otherwise the trial will not be authorised under European legislation or by an ethics committee. See CLINICAL TRIAL INSURANCE.

Claims-made policy for research organisations, drug manufacturers, hospitals, universities, etc., involved in clinical trials. The insurer indemnifies the policyholder in the sums they have agreed to pay to trial participants for injuries regardless of fault. Claimants may prefer to make normal legal liability claims rather than use the agreed arbitration/ compensation processes. If so, the policyholder’s legal liability is covered under a second section of the policy.

A linkage between an FSAauthorised firm and another firm or entity falling into one of a number of defined categories, viz: a parent company; a subsidiary; a subsidiary of a parent company; entities or persons owning or controlling 20 per cent of the voting rights or capital; companies in respect of which the firm owns 20 per cent or more of the voting rights or capital. The FSA is concerned to satisfy itself that, taking account of close links, it can exercise its supervisory function effectively.

A life insurance fund maintained for a particular group of policies with no new business being accepted for the fund.