a friendly society which is subject to the provisions of the EC Insurance Directives, as implemented in UK law.

Amend Directive 73/239/ EEC (life undertakings) and 79/267/EEC (non-life undertakings) to strengthen solvency margin requirements. The new requirements (not applicable to mutuals, life or non-life, with less than €5 million annual contribution income): (a) allow Member States to establish more stringent solvency requirements; (b) increase the minimum guarantee fund, (to €3 million index-linked; (c) increase the threshold levels of premiums and claims below which a higher solvency margin is required; (d) allow earlier supervisory intervention; (e) increase the solvency margin for certain volatile categories of non-life business (marine, aviation and general liability) by 50 per cent; (f) allow a life company to include up to 50 per cent of its future profits for solvency until 31 December 2009 subject to supervisory approval; (g) the division of assets, for solvency purposes, into three categories those acceptable without limitation, those acceptable subject to limitations and those acceptable only with approval. The new measures start in 2004.

Companies Act 1985, s.741 states that director includes any person occupying the position of director by whatever name called’. A director is therefore anyone who ‘directs’ (identified by function rather than title). De jure directors are formally appointed and registered. De facto directors (constructive) are never formally appointed but act openly. Shadow directors do not act openly, they ‘lurk in the dark behind those who do’, being persons ‘in accordance with whose directions and instructions the directors of the company are accustomed to act’ (s.741(2)). Both executive and non-executive (i.e. outsiders) have the same general legal duties. The Higgs Report (2003) on corporate governance has introduced the concept of independent director, i.e. a non-executive director determined by the board as being independent in character and judgement and there are no circumstances (e.g. former employee) which could affect, or appear to affect, the director’s judgement. The Code on Corporate Governance also calls for the appointment of a senior independent director to liaise between the board and major shareholders.

Indemnifies directors and officers for loss arising from claims against them by reason of a wrongful act related to their duties. The indemnity is on annual aggregate limit basis inclusive of legal costs and expenses incurred in responding to any allegation against directors and officers. Defence costs related to certain criminal or regulatory charges are also covered. The policy does not cover fines, penalties or punitive damages or, unless extended, liability as pension trustees. The insurer indemnifies the company where it has reimbursed a director or officer in relation to an insured event. The policy is claimsmade, carries an excess and may be extended to cover employment practices liability. See ALLOCATION.

A director has extensive powers to bind the company but may be personally liable for a breach of duty. The duties embrace: compliance with the Companies Acts and the Articles of Association; exercise of reasonable care and skill; and a fiduciary duty to act in good faith. Directors principally owe their duties to the company but may also owe duties to creditors and the company’s employees in general. Certain sections of the Companies Acts and other legislation (e.g. Health and Safety) expose the director to criminal liability. Directors may also attract personal liability for fraudulent trading or wrongful trading or exceeding their authority. See DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE.

Insurance scheme set up by the Institute of Directors for its members for up to £1 million indemnity and £25,000 insolvency defence claims and other extensive cover.

UK: 1. Disability Discrimination Act 1995 defines it as an impairment that is either physical or mental adversely affecting the person’s ability to carry out day to day activities. The adverse effect must be substantial and long-term. 2. Under income protection insurance and other health policies disability definitions are related to occupation. Disability could mean the inability of the insured to carry out (a) his own occupation; (b) any occupation for which he is suited by education, training and experience; (c) any occupation; or (d) specific tasks as defined in the activities of daily life or activities of daily work.
***
MEDICAL,USA: 1. Impairment, loss of function (mental, physical, social), and inability to work either temporarily or permanently due to an injury or sickness. There are varying types (functional, occupational, learning); degrees (partial, total); and durations (short-term or long-term temporary, total, permanent) of disability. 2. For Social Security purposes, the inability to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or to last for a continuous period of not less than 12 months. Special rules apply for workers aged 55 or older whose disability is based on blindness. The law generally requires that a person be disabled continuously for 5 months before he or she can qualify for a disabled worker cash benefit. An additional 24 months is necessary to qualify under Medicare. 3. In workers’ compensation cases, a condition that renders the insured employee incapable of performing one or more of the duties required by his or her regular occupation. 4. In disability insurance, the definition of disability is variable. Some policies pay benefits if the individual cannot return to the exact occupation he or she had before. Some pay only if the individual cannot do any job for which he or she is reasonably qualified. Some policies pay if the person has been disabled by an accident and not by illness. Some policies have several tests to determine whether the insured is disabled according to the policy.
***
A medical condition or psychological affliction that limits the individual’s capability to engage in everyday activities. This may be a temporary or permanent circumstance.
***
A physical condition which makes an insured person incapable of doing one or more duties of his occupation.
***
US: A physical or a mental impairment that substantially limits one or more major life activities of an individual. It may be partial or total. (See Partial Disability; Total Disability.)
***
Takes several forms and would depend upon the terms of the individual Policy. Major areas are partial, which is found under accident and health Insurance, permanent partial, which is found under workmen’s compensation, accident and health Insurance, permanent total disability which is found under workmen’s compensation Insurance, accident and health Insurance. Also temporary total and temporary partial which are found under workmen’s compensation, accident and health Insurances.

aims to end discrimination against disabled persons in regard to: access to goods, services and facilities; buying or renting property; employment. It is unlawful to treat the disabled less favourably than others and it is now necessary to make reasonable adjustments in the way services are provided. From 2004, service providers will have to consider adjusting the physical features of their premises where they disadvantage the disabled using the service. The law applies to employers with 15 or more employees and to service providers. Discrimination is a source of claims under employment practices liability insurance. See DISABILITY 1.

Independent body created by statute to eliminate discrimination and promote equality of opportunity. Advises government, business, disabled persons and service providers. DRC is the statutory enforcement mechanism for the Disability Discrimination Act and is empowered to issue non-discrimination notices.