Includes entering into a contract of insurance with a customer on behalf of an insurer and is therefore FSA regulated as a part of insurance selling.

Tax-free lump sum payable on the death of a group life and pension scheme member while still employed prior to retirement. The benefit is a multiple (e.g. four times) of the deceased’s annual earnings. The trustees pay out the lump sum and are not necessarily bound by the member’s nomination as to the beneficiary. Early leavers may exercise rights under a continuation option, to continue with life cover without evidence of health.

The mortality risk above the level of the ceding office’s retention for which reinsurance may be required. On a risk premium basis this is the difference between the sum insured and retention in the first one or two years.