Business interruption insurance term used when ‘gross profit’ is defined as the amount by which the sum of the amount of the turnover and the amounts of the closing stock and work-in-progress shall exceed the sum of the amounts of the opening stock and the amount of the specified working expenses. In short, it is sales minus the cost of goods sold.

A master policy purchased by a multinational company to fill the gaps in cover that may arise through differences arising in insurances purchased locally in different overseas countries. The master policy only operates for risks not covered under local policies. It ‘tops up’ the cover to the level desired by the organisation as a whole. See difference in limits. In property insurance it may take the form of an ‘all risks’ cover on a large risk to supplement underlying insurances arranged on a named peril basis.
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Insurance contract that expands or supplements underlying property Insurance written on a named peril basis so as to cover that property on an All Risk basis, subject to stated exclusion designed to prevent overlaps with the underlying coverage.

Operates in the same way as difference in conditions insurance by providing excess limits of indemnity over the limits of locally arranged insurances purchased overseas.

A newly introduced (2004) examination-based qualification recognising the technical’ development achieved by those with a growing understanding of the industry. It requires candidates to pass a 110 credit threshold. Successful CII members can apply to use the designation ‘Dip CII’. See ADVANCED DIPLOMA IN INSURANCE.

An arrangement that enables certain motor syndicates at Lloyd’s to deal directly with non-Lloyd’s brokers. However, the premiums payable have to be guaranteed by, and paid through, a Lloyd’s broker.

UK: an immediate insurer of a risk, as opposed to a reinsurer who insures derivative risks, that is the risks assumed by a direct insurer.
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UK: An insurer, as opposed to a reinsurer. The direct insurer provides the primary insurance for the business community or general public with or without the involvement of an intermediary. In the US particularly, the term is also used for an insurer dealing direct with their policyholder and not through brokers or agents.
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RAW: See: direct writer .