Pension scheme under which benefits are related to earnings in each year of membership. An alternative term is salary grade scheme.

Causes that result in loss over time, e.g. rust, corrosion and normal wear and tear. No fortuitous element is present and compensation for the reduction in value would contravene the principle of indemnity. Wear and tear, etc., is specifically excluded from all risks’ policy but ‘new for old’ and reinstatement policies modify the principle of indemnity.

A rule of construction meaning that in construing a policy the ordinary rules of grammar and punctuation will apply, although a court has a discretion to correct obvious slips. The draftsmen of policies and legal documents try not to rely on punctuation to convey their meaning.

The legal process of proving a will, appointing an executor and settling an estate; but by custom, it has come to be understood as the legal process whereby a deceased person’s estate is administered and distributed. Where the deceased dies intestate the deceased’s legal personal representative is called an administrator.

London’s largest fire. It occurred in 1666 and started in Pudding Lane. It spurred the development of fire insurance. Previously fire damage compensation was funded by charitable donations and collections from guilds of craftsmen and churches. The Fire Office, formed in 1680, is generally regarded as the first fire insurance company although records indicate that fire insurance was transacted in 1667. For other historical aspects see fire marks and the Tooley Street fire.

UK: The amount of insurance the insurer has on a risk before deducting the amount reinsured. Net lines plus reinsurance equals gross lines.
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The amount of risk that an insurer or reinsurer is carrying before taking account of any applicable reinsurance that reduces that risk.
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The maximum amount an insurer will insure on a particular risk.
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The maximum limit an insurer or reinsurer is willing to accept before taking credit for reinsurance coverage. Such limits are usually expressed per insured, per line of business, and the like. See Net line.
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REINSURANCE: The total limit of liability accepted by an insurer on an individual risk (net line plus all reinsurance ceded).
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The total sum accepted by an insurer on an individual risk, including the amount to be reinsured.

Method for placing a value on a life insurance company’s liabilities that explicitly values the future office premiums payable. In addition, it usually values explicitly future discretionary benefits and future expenses. If it explicitly allows for future bonuses it may be referred to as a bonus reserve valuation. The valuation may be carried out using formula or cashflow techniques.

Aggregate of all premiums falling due during the accounting year, including single premiums and portfolio premium entries after deducting portfolio withdrawals and cancellations.

The amount, or difference, by which sales revenue exceeds the cost of sales, i.e. costs incurred in getting the goods ready for sale such as purchases, direct labour costs and other direct costs in manufacturing. Loss of gross profit is insured under a business interruption insurance that usually provides cover on the difference basis. An older way of calculating gross profit was to add the net profit to the standing charges of the business.
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Net profit plus the insured’s standing charges