Actuarially estimated economic value of the in-force life insurance contracts of an insurer but excluding any value attributable to future new business. Embedded value earnings are the difference between the opening year value and the year-end value (after adjustments for any capital movements such as dividends and capital injections). The change in value measures the performance of the company’s life insurance operations.

Nonionising radiation created by a flow of electricity. Manufactured EMFs, which have higher frequencies than those occurring from the earth’s magnetic field, can affect the body tissue. Direct evidence is lacking, but health risks linked with EMFs are: impairment of the immune system, reducing the ability of the white blood cells to kill tumour cells and fight disease; adverse effects on the central nervous system, brain and glands that are connected with cancers and other physical and emotional problems; influence on body’s control of cell growth; adverse effects on the skin. Magnetic fields are best dealt with by designing them out or shielding them at source. Employer’s risk assessments under MHSW should include EMFs.

Medical questionnaire completed by a member of a group life pension scheme when the benefits sought are in excess of the free cover limit.

Employees appointed as trustees of their employer’s occupational pension scheme. Dismissal or redundancy is treated as unfair if prompted by the performance of their trustee duties. They do not have to be member-nominated employees to benefit from the protection under the Employment Rights Act 1996.

An employee works under a contract of service; an independent contractor works under a contract for services. However, the courts consider the actual relationship rather than rely upon what the parties call their arrangement. The relationship affects an individual’s employment rights, his entitlement to health and safety provision and also affects the employer’s vicarious liability for the individual’s torts. The courts use a variety of tests to determine the relationship: the control test; mutuality of obligation; integration test; and the financial risk test (employees do not take this risk). Regard is also paid to the contractual arrangements, methods of payment, etc. Insurers write their own definition of employee into liability policies.

Employers’ liability policies exclude indemnity in respect of any liability covered by compulsory Road Traffic Act insurance. Consequently an employer faced by a claim from an employee injured as a passenger, in circumstances in which compulsory motor insurance applies, will claim under his motor policy.

Undertaking, in a prescribed form, whereby an employer informs an actuary whether any of the specified events, which are likely to invalidate any certificate required for contracting out, have occurred.

Employers must maintain approved policies with authorised insurers. This is to cover liability for bodily injury or disease their employees may suffer in the course of their employment. Insurers must issue a Certificate of Insurance to employers who take out or renew policies. Employers must display the certificate, or a copy, at each place of business for the information of the employees, retain them for 40 years and present them for inspection by HSE. The insurance must be for at least £5 million for any one occurrence.

An employee, injured in the course of employment by a machine defect, no longer has to prove that his employer was negligent. The employer is strictly liable even though a third party such as a manufacturer, whether or not identified, is at fault. The if employer’s right of recovery, any, against a manufacturer is subrogated to the employers’ liability insurer.

Covers the insured’s legal liability for bodily injury or disease to employees if caused during the period of insurance. The policy also covers the insured’s own costs and pays for solicitors’ representation at inquests and courts of summary jurisdiction. Cover does not apply to injury or disease caused outside the UK except for UK-based employees. Policy extensions relate to principal’s clause, unsatisfied court judgements and, less frequently, retrospective cover. The normal limit of indemnity is £10 million for any one occurrence. See EMPLOYERS’ LIABILITY (COMPULSORY INSURANCE) ACT 1969.