Also known as a reversionary annuity. The payments to the annuitant start on the death of a named person. One spouse can use this type of annuity to make provision for a surviving spouse.

Life policy under which the sum insured is payable on the death of one person (the life insured), provided it occurs during the lifetime of another (the counter life). The ages of both lives must be proved, but only the life insured is required to prove his state of health.

Term describing business interruption insurance extensions to cover external dependencies, e.g. suppliers.

an amount payable to a broker or ceding company, in addition to the normal percentage commission, calculated as a percentage of the insurer’s or reinsurer’s net profit on the business after allowing for overheads; also known as profit commission.

Fallback cover that does not replace a primary cover but is triggered if the intended primary cover is non-existent or ineffective. An employer normally relies upon an indemnity under the employees’ car insurances, when employees use their cars on his business. If an employee’s policy is invalid, the employer’s indemnity fails but the motor contingent liability section of his public liability policy fills the gap. Others who need contingent liability cover include principals relying on cover arranged by contractors and hire car operators relying on insurance arranged by hirers.

A form ofcontingent capital giving the (re)insurer the right to issue debt to investors or a bank if specified events take place although the arrangement may be unconditional. CSNs are equivalent to overdrafts and ensure the solvency of the (re)insurer in times of high claims.

Institute Time Clause/International Hull Clause by which the vessel is held covered until arrival at her destination should she be at sea or a port of distress, at the time the policy expires. It rarely applies as the succeeding policy comes into operation immediately at the expiry date.

Occupational pension scheme offers members who leave the scheme the opportunity to continue any life insurance benefit they were entitled to as members of the scheme. An ex member is able to effect cover without producing evidence of health within a limited period.
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An option in a group health insurance for an individual leaving the group to maintain insurance in respect of himself.