Private car insurance rating factor reflecting the extent of use of the car. Use solely for social, domestic and pleasure purposes is the most lightly rated with little difference in premium to include commuting to work. The highest rated category (known as class 3) is full business use including commercial travelling. The intermediate classes include more restricted business use.

1. Hull clause providing that an insured, who fails to maintain the ship’s agreed classification or follow the classification society’s recommendations in regard to seaworthiness or maintenance recommendations, faces automatic termination of hull and machinery cover. Innocent mortgagees may be protected for a limited time. 2. Floating policy or open cover clause specifying the minimum class of vessel required to carry the insured cargo. If the vessel is below the class specified, an additional premium is charged.

Organisations that survey, classify and grade ships according to their condition for insurance and other purposes. The classification clause lists nine societies including Lloyd’s Register and the American Bureau of Shipping. See A1.

A bill of lading endorsed to note some defect in the products or packaging of the goods to be shipped.

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.
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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.