A phrase used when a restriction, e.g. an excess, will be applied for each separate claim.

Maxim describing the basis on which a Lloyd’s member, name or corporate accepts a share of the risk. Names, a declining category, are sole traders with unlimited liability but like corporate members have no liability for the shares of co-syndicate members.

Occupational pensions scheme member who leaves before normal retirement age without getting an immediate retirement benefit but may qualify for a deferred pension. Alternatively his accrued benefits could be transferred to a new scheme or used to purchase a buy out policy (also called a Section 32 policy). See PRESERVED BENEFITS.

Occurs when an individual retires before the normal retirement date of the occupational pension scheme. Scheme rules and the IR usually allow immediate pensions from age 50. When early retirement is voluntary, the accrued pension rights are scaled down. Members below age 50 are early leavers unless granted a pension through incapacity.

A derivative of guaranteed asset protection, it covers the monetary shortfall that may arise when a car purchase finance agreement is terminated due to death or a change in the debtor’s employment status through resignation, unemployment or pregnancy, or due to the vehicle being written off or stolen.

A collection of individual arrangements under a single trust. Each member’s fund is held under a separate earmarked insurance policy and no other investments are allowed in this scheme.

A court order compelling a pension scheme to earmark some or all of a member’s pension scheme benefits for payment to an ex-spouse. As earmarking leaves the couple financially linked until retirement it has been superseded by pension sharing.

A basis for calculating the insurer’s loss ratio. The claims cost estimated for a period is compared with the premiums earned for the period and expressed as a percentage thereof.

Sets a limit on how much of a person’s income can be used to calculate the contribution that can be paid to, and the benefits that can be paid by, tax approved pension schemes. Contribution limits are expressed as percentages of earnings (15 per cent for occupational scheme members) subject to the annually adjustable cap, £99,000 (2003/4). The cap affects class A members only.