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.