A concept introduced in the Pensions Bill of 2004 that will be legislated in 2005. It will oblige solvent employers who wind up defined benefit pension schemes to meet their in pension promises in full by buying out members’ benefits.

Hull policy clause making the entire premium fully earned if the insurer pays a total loss for the insured vessel, i.e. no return to the insured for the unexpired period.

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.