For Consumer tection Act 1987 purposes: a product where the safety is not such as persons generally are entitled to expect. A product is not considered defective merely because it is of poor quality or because a safer version is put on the market. When deciding whether a product is defective, a court takes account of all the relevant circumstances including: the manner of marketing; any instructions or warnings given; what might reasonably be expected to be done with it; the time the product was supplied.

Indemnifies the prospective purchaser of land against loss occasioned from defects in the legal title arising from missing documents, etc. A title insurance policy extends for so long as the insured’s interest in the property remains. The insurance is normally required by mortgagees before being prepared to grant loans where the mortgagor is at risk of a defective title.

1. Motor trade. Negligent workmanship on a customer’s vehicle or the sale of a defective part by a motor vehicle repairer may cause an accident. The resultant liability can be insured under a motor trader’s comprehensive road and garage policy, or as an extension of the internal risks policy. ‘Workmanship’ means ‘repair, servicing, or maintenance and includes the predelivery check of a new vehicle and MOT tests. The widest available cover embraces: negligent workmanship, sale of spare parts and liability for damage to the customer’s vehicle. 2. Public liability. See PROPERTY WORKED ON.

A pre-agreed period, commonly 12 months, starting from practical completion during which a builder must remedy, at his own expense, all genuine defects appearing in the building. The builder’s liability policies should continue to run during this period.

Life insurance underwriting method for slightly impaired lives proposing for ‘with profits’ life assurance. Acceptance is at ordinary rates but bonuses shall not vest until maturity, or until attainment of the normal lifespan expectation.

Acquisition costs that are carried forward to a subsequent accounting period in order to match such expenses with the income generated.

1. A pension based on accrued benefits from an individual’s membership of a previous pension scheme. The preserved benefits remain frozen until the scheme’s normal retirement age for members with two or more years service. In final salary schemes the deferred pension can attract See discretionary benefits. DEFERRED PENSIONER. 2. The term is also used when a member takes a pension later than the normal retirement age.

A former active member of an occupational pension scheme whose benefits remain in the scheme as preserved benefits until transferred to a new scheme or a personal pension or drawn as a pension at a later date. See DEFERRED PENSION.

A period of delay prior to the payment of benefits in respect of any claim under an income protection insurance. The period may be 4, 13, 26 or 52 weeks chosen by the insured based on the period during which full salary is payable under the employment contract. Compare with WAITING PERIOD.