the traditional technique of reserving for future claims in general insurance business which compares the emergence of claims year by year for each underwriting year, to arrive at an ultimate loss estimate by applying development factors to losses already paid or incurred; the relevant data are set out in triangular arrays (whence the alternative term triangulation).

A method used in general insurance by claims reserving practitioners to estimate the loss development of outstanding claims. It involves calculating ratios of adjacent ‘ladders’ (columns of figures) in a table.

A proximate cause term referring to a sequence of events preceding a loss.
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If there is a Direct chain of events (one leading to the other) with no exceptions involved, the insured peril is the Direct and natural cause of the loss and there is liability. But if an excepted peril precedes the operation of the insured peril so that the loss caused by latter is Direct and natural consequence of the excepted peril, there is no liability. Broken chain of events : Where the chain of events is broken, without any excepted perils, and if it is possible to separate the losses, there is liability for losses caused by the insured peril. If the chain is broken by an insured peril, the subsequent peril breaks the chain, liability ceases for subsequent losses only.

The right of a supplier of an injurious product to recover the amount paid in damages from his own supplier. A retailer, liable under the Sale of Goods Act 1979 for product-induced injuries to a customer, may seek an indemnity under the Act from the relevant wholesaler or manufacturer who breached an implied term (fitness for purpose and satisfactory quality). However, as it is a nonconsumer contract an exclusion of these implied terms is permitted if the supplier can show that the exemption passes the test of reasonableness. In turn a wholesaler can look to the manufacturer for a Sale of Goods Act 1979 breach.

The committee that recommended the replacement of the regulatory and market boards at Lloyd’s by a single franchise board. Lloyd’s acts as franchisor and the managing agents as franchisees. Another key outcome was the replacement of the three-year accounting system with GAAP accounting.

A court bond guaranteeing the performance of receivers and managers appointed by the Chancery Division of the High Court. The receivers and managers may deal with the preservation of property or collection revenue arising from property. Receivership may arise: pending litigation; during the minority of an infant; to prevent dissipation of assets by persons having immediate or partial interest in it, or to whom it is entrusted by law. The Chancery division fixes the amount of the guarantee and the remuneration of the receiver.

Fire policy exclusion in respect of damage to perishable goods caused by a change in temperature resulting from destruction or disablement by an insured peril of the cold store or refrigerating plant. The risk can be bought back for an additional premium.
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An exclusion in a fire policy on goods in a cold store of damage to perishable goods caused by a change in temperature.

Signifies that the original insured’s interest in subject matter of insurance has been taken over by a new party who is the new insured. The latter normally completes a new proposal form prior to being accepted. See NOVATION; PERSONAL CONTRACTS.

An Institute Time/International Hull Clause enabling the insurer to cancel the policy in the event of the vessel being sold or transferred to new management during the currency of the policy if they do not approve the change. If the vessel has sailed, the cancellation is suspended until arrival at the port of final discharge.

Requires that the reinsured does not, after arranging the reinsurance treaty, change its underwriting practices with regard to the business covered by the treaty without the reinsurer’s consent.