UK: 1. Binds the reinsurer to follow the settlements’ of the reinsured provided that the settlements are within the terms of the original policy and the reinsurance. 2. Facultative reinsurance clause that passes control over all claims settlements to the reinsurer where all or nearly all of the risk is reinsured.
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REINSURANCE: A clause in a facultative reinsurance contract, where all or nearly all risk is reinsured, to give the reinsurer control over claim settlement.
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REFERENCE See: “Reinsurance, Full Reinsurance Clause.”

Theft cover that goes beyond ‘forcible or violent entry or exit to or from premises’ to cover any dishonest appropriation. Full theft cover is not normally available to shops or hotels, which are susceptible to casual theft.

A notation on air waybill indicating that a specific value has been declared to the carrier for the carriage of the merchandise.

Property insurance in which the sum insured represents the full value at risk. Where the insured completes a proposal and signs a declaration he may ‘warrant’ that this is the case.

A pension scheme where the trustees have effected an insurance contract in respect of each member guaranteeing benefits corresponding to those promised under the rules.

UK: A provision or reserve. Each class of insurance business has a fund based on the balance of premiums less claims and expenses after taking into account any transfer to or from the profit and loss account. In life insurance, it often means a pool of assets managed separately for asset and liability management purposes. Funds may be legally or contractually segregated which may limit the freedom of the company to switch assets between funds.
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Allocation of premiums from which losses can be paid.
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MEDICAL,USA: In a managed care capitation contract, the specific amount of dollars in reserve that is available to compensate the contracted provider of services.

for life insurers, an accounting concept expressing the balance of its actuarially calculated liabilities to policyholders (‘mathematical reserves’) together with miscellaneous liabilities and unappropriated surplus; may also be used to mean the assets representing the fund.

in funded basis, the balance of premiums received less claims and expenses paid in respect of business accounted for on a two or three year basis the profits of which have not been struck.

Risks of potentially wide-ranging effect on society as a whole or large segments thereof rather than individuals. They are of a catastrophic nature, e.g. war, famine, earthquake, widespread pollution and unemployment. They are generally outside the scope of private enterprise insurance with responsibility being accepted by governments. Compare with particular risks.