An aviation insurance clause that applies when the premium is payable by instalments. If an instalment is not paid the clause: (a) terminates cover at midnight on the day concerned; and (b) requires the payment of the outstanding balance if the claims exceeds the premium instalments paid.

A clause in a reinsurance or other agreement that specifies that deficits shall be carried forward and offset in arriving at any profit commission due to the reinsured. Deficits may be carried forward to extinction or for a limited period, e.g. three or five years.
***
A condition in a treaty which requires that a deficit at the end of one Underwriting year be carried forward into the account for the next year, when determining the overall profit in a profit commission statement.

An accrued benefits valuation in which the actuarial liability for active members is based on the benefits that would arise if the scheme were to discontinue at the valuation date. The standard contribution rate is the rate required to cover both the cost of benefit payments in the ongoing scheme and the accrued benefits in the event of future discontinuance at the end of the control period.

Occupational scheme under which the retirement benefits are fixed by formula (e.g. 1/60th or 1/80th of final pensionable pay for each year of pensionable service). The employer undertakes to make whatever contributions, taking account of any employee contributions, are necessary to secure the pensions. Most schemes are final salary schemes, and are subject to Inland Revenue limits if they are exempt approved schemes.

Occupational pensions scheme where an employee’s retirement benefits depend on (a) the amount of contributions and investment income on these contributions, and (b) the annuity rate available when the member retires. There is no set formula, as in the case of defined benefit schemes, for determining benefits. These schemes are also called money purchase schemes

A clause whereby insurers define the meaning they intend to assign to various words and phrases in the policy. This is particularly important when the ordinary meaning of the word is not appropriate. The term ’employee’ is widely defined in public and employers’ liability policies with the intention of removing doubt that might otherwise cause disputes.

The measure of deviation of one day’s average temperature against a standard reference temperature, e.g. 65°F or 18°C in a reference station such as London Heathrow. An average daily temperature of 23°C produces 5 degree days and measures the intensity of warmth on that day. See HEATING DEGREE DAYS; COOLING DEGREE DAYS; CUMULATIVE DEGREE DAYS; GROWING DEGREE DAYS.

1. An insured event under a travel insurance policy paying agreed sums if the insured’s holiday departure is delayed as a result of specified occurrence, e.g. industrial action, adverse weather, aircraft breakdown, etc. 2. Late arrival of cargo at destination caused by adverse weather, mechanical breakdown or some other reason. The marine extension clause (8.3, Institute Cargo Clauses) extends the warehouse to warehouse clause to provide continuous cover during any deviation, forced discharge, reshipment or trans-shipment or other interruption beyond the control of the insured. The clause extends existing cover during the delay but does not add ‘delay’ as an insured peril so loss of market, etc., will not be covered.

Specialised policy for ‘blue chip’ construction companies with sophisticated risk management programmes. Cover provides protection against penalties incurred as a result of late completion of a contract or mile stones within the contract, and the post completion efficacy risk. Policies are customer-specific with negotiable deductibles based on cover up to US$30 million.

An insurance to cover the extra expenses arising from the delay in launching a satellite.