Insurance policy endorsement covering the policyholder’s interest in mortgaged property providing that, if the insurer becomes insolvent, the reinsurer will pay any claim due directly to the mortgagee and/or policyholder. The endorsement is also called the mortgagee endorsement and conceptually is similar to the cut-through clause.

The right to use the proceeds of a pension plan or insurance policy to purchase an annuity at a minimum rate guaranteed in the contract. Insurers are exposed to the risk of falling interest rates and may use derivative contracts to protect themselves against potential losses. See also OPEN MARKET OPTION.

Pays the difference between the amount outstanding on a loan and the amount paid by an insurer if the asset, e.g. a car, is written off or stolen. It prevents the former asset owner being left with a debt. Cover is available on cars, caravans, motor cycles and light commercial vehicles and non-vehicular assets. See VEHICLE REPLACEMENT INSURANCE.

A life insurance term describing the insurer’s offer to provide new policies without further evidence of health. The offer is usually confined to existing policyholders.
***
An option that permits the policy holder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability.

Minimum pension that a defined benefit scheme must provide as a condition of contracting out for pre-6 April 1997 service. GMP does not apply to money purchase contracted out schemes as the granting of protected rights is the relevant contracting out provision. Where all service is post-5 April 1997 the members’ benefits are protected by limited price indexation (LPI). Where service is pre- and post-5 April 1997, benefits are affected by GMP and LPI respectively.

The minimum pension a particular insurance policy will pay.

Mininimum period for which the payment of a pension or annuity is guaranteed regardless of the annuitant’s earlier death. If premature death occurs the insurer may be willing to pay the net present value of the annuity payments as a lump sum.

The minimum surrender value that an insurer will pay in the event of a life policy being surrendered. High guaranincrease the incidence of early cancellation of savings policies, such as endowments, meaning that insurers may have to invest in readily realisable assets such as fixed interest securities. tees may

In the context of certain hotels, e.g. inns, it is someone who books sleeping accommodation. The innkeeper becomes strictly liable for loss or damage to the property of a guest subject to the limitations introduced by the Hotel Proprietors Act 1956.