1. Where two or more insurers share the same risk. A co-insurer is not bound to follow the decision of another co-insurer, except where he has given authority for the other insurer to act on his behalf. Each co-insurance is a separate contract with the insured. 2. Where an insured shares a part of the risk, e.g. 10 per cent of each claim (co-insurance clause), the insured is said to be a co-insurer.

the FSA’s Conduct of Business manual, containing the rules, evidential provisions and guidance relating (in the main) to forms carrying on regulated activities under FISMA.

Guidance for a Lloyd’s managing agent who must have a suitable risk man agement system in order to satisfy Lloyd’s Core Principle 9. This Principle calls upon the agent to ‘organise and control its internal affairs in a responsible manner, maintaining proper records and systems for the conduct of its business and the management of risk’.

Created by the ABI, Lloyd’s, salvage industry interests and the government, the Code gives directions on the treatment of vehicle salvage and recovered stolen vehicles. The intention is to make it difficult for criminals to ring vehicles or return dangerously repaired vehicles to the road. The Code must be complied with by insurers and salvage agents.

Created by insurance interests and the government, it helps employees/former employees trace the employers’ liability insurer on risk at the time their long-tail liability was caused. The employer may have ceased trading or insurance records may not exist or be inadequate. The Code requires insurers to maintain records to improve access to information. Insurers must state how their records can be searched, keep all records for 60 years, appoint a designated contact to handle enquiries, meet prescribed timescales and state annually that they have complied with the Code. There are two versions of this voluntary Code the ABI Code for Insurance Companies and the NMA Code for syndicates at Lloyd’s.

An uninvited personal visit or oral communication. They are allowed for life insurance, unit trusts and personal pensions but the caller must present a business card stating his name, position, firm’s name and address and the FSA authorisation logo. Telephone calls must not be made at an unsociable hour and no misleading information given. The caller must make it clear to the client that he will be entering into a contract for the purchase of investments. No undue pressure may be used.

An explosion caused by the sudden release of pressure as in the case of a ruptured steam boiler. The risk is generally covered under boiler and pressure plant policies but cover exists under the standard fire policy for damage caused by explosions (including hot explosions) of domestic boilers.

A construction/demolition term referring to damage to property caused by the removal or weakening of support accorded to any land, building or structure. The risk is excluded under the liability sections of contractors’ all risks and erection all risk policies but can be bought back subject to a hefty excess and the exclusion of the contract works.

Combination of put options and call options used, for example, by energy producers and end users to hedge against extreme price movements by keeping price within a defined range. The downside risk is limited at the cost of the upside potential. If price falls below the ‘floor, the end user pays the energy company under the contract. If the ceiling’ is exceeded the energy company pays the end user.