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.

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.
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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.