Reinsurer agrees to automatically accept individual risks for a specified period (e.g. 30 days) during which time it decides whether to accept the risk on a facultative reinsurance.

Under the FSA ‘know your customer’ rule (Conduct of Business Rule 5.2.5) a firm making a recommendation on a designated investment (and certain pension transactions) to a private customer must take reasonable steps to acquire sufficient personal and financial information before making the recommendation. There is no prescribed method of eliciting information but firms should have a suitable factfinding’ process. The document recording the information is a ‘fact-find’. There are special rules for Friendly Society policies not exceeding £50 per annum or £1 per week.

An Act, largely superseded by the Health and Safety at Work, etc., Act 1974, that extended certain common law duties of employers towards factory employees. Generally, the duties require employers to take reasonable care that the precautionary measures are not only adopted but are strictly observed. Liability is on the occupier of the factory, unless exceptionally it attaches to the owner. Most health and safety obligations are now covered under the Health and Safety At Work, etc., Act 1974 and the Management of Health and Safety at Work Regulations 1999.

Widely defined in the Factories Act 1961, s.175, the definition includes air any premises, open included, where people are employed in manual labour in activities such as manufacturing, repairing, cleaning, demolition and the slaughter of animals.

US group of direct underwriting mutuals specialising in highly protected risks of large concerns on a recriprocal reinsurance basis. The objective is to provide insurance and safety engineering services for large manufacturers, substantial housing projects and public institutions.

a contract for reinsurance whereby the ceding company may cede risks of any agreed class which the reinsurer must accept if ceded
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Fac-oblig’ allows the cedant to select the risks he offers to the reinsurer who must then accept all cessions within the treaty. It is normally arranged after a surplus treaty and provides automatic facultative cover for the cedant when the surplus treaty capacity is full. It differs from a second surplus treaty only in that the cedant has a choice.

Professional body representing actuaries in Scotland. See INSTITUTE OF ACTUARIES.

The Insurance Mediation Directive requires firms to base their advice on a fair analysis, meaning that they must analyse a sufficiently large number of contracts before making a recommendation. See ADVISED SALES.

A decreasing term insurance that, on death within the policy term, pays a regular tax-free income for the remainder of the term. There is no survival benefit. The amount of income benefit’ per year usually remains level over the term selected but ‘increasing benefit’ policies can be arranged.

Seller pays all costs up to and including delivery of goods alongside the vessel and provides all documents. The risk and title then pass to the buyer who incurs the cost of loading onto the vessel and all further transit costs including insurance.