A warranty whereby the insured promises that a state of affairs will exist for the duration of the policy, e.g. disposing of waste at the end of each day. The policy is voidable from the date of the breach unless the court interprets the insurer’s words as being insufficient to amount to a continuing warranty, preferring to classify the words as a description of risk clause.

When a member leaves his occupational pension scheme but keeps his benefits in the fund, and subsequently resumes membership, the periods of service before and after the break may be aggregated. Aggregation also occurs when an employee moves from one employer to another employer in the same scheme.

A reinsurance contract that, once incepted, continues indefinitely until one of the parties gives notice of their intention to terminate the arrangement. Cancellation may be on a cut-off or run-off basis.

Any ambiguity in the wording of a contract will be construed against the person who drew up the wording, i.e. in insurance against the insurer. The rule will only be applied where there is real ambiguity.
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In any unilateral contract, such as an insurance policy, any ambiguity in the language of the contract is strictly interpreted against the party that wrote the contractin this case, the insurance company. This is known as the contra proferentem rule and it involves a three-step process.First, the court examines the language in the policy to determine whether or not it is clear and unambiguous. Second, if the court decides the language is ambiguous, evidence is admitted in an attempt to determine the true meaning of the language. This can include, for example, testimony of the parties to the contract about their original intent. If the additional evidence does not clarify the policy’s language, then the contra proferentem rule is applied and the ambiguous language is interpreted in favor of the party bringing suit against the insurance company. (See Unilateral Contract).

Goods that a belligerent may lawfully seize on the way to his enemy’s territory. When used in a marine insurance policy the term applies only to goods or merchandise. It does not extend to persons (officers of a belligerent power) even though their presence on ship may increase the risk of an attack. If a policy is warranted ‘no contraband’ the policy may be avoided if any part of the goods carried is contraband.

A commercial legal expenses insurance providing for the legal costs and expenses incurred in pursuing or defending contract disputes. Cover may be confined to disputes with customers or suppliers or give full contract cover. Policies are subject to a waiting period of 90 days.

Covers airlines against the estimated loss of profit following their inability to complete a specific project due to force majeure, war, repudiation or aircraft failure.

Contract evidencing the terms of carriage between a shipper and carrier normally expressed in the bill of lading or waybill.

Clause whereby if damage to undelivered goods leads to cancellation of the contract, the insurer will settle on the contract price rather than production costs. The profit element, otherwise irretrievably lost, becomes a part of the indemnity.