the premiums and sum assured are increased by a predetermined proportion each year calculated on the original sum assured.

The total of paid and outstanding claims arising in a period. The term is also used, for the purpose of claims statistics, where, for given accident or policy years, the incurred claims are compared to earned premiums in order to assess the underwriting profitability for each class of business.

(1) in relation to the totality of an insurer’s general insurance business, or a given class of such business, the claims paid in a given year less the claims reserve at the beginning of the year plus the claims reserve at the end of the year; (2) in relation to a cohort of claims originating in a given policy year or accident year the amounts paid to date on settled or partly settled claims plus the reserve for open claims (that is, excluding the BNR element).
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(01 The losses paid or payable for claims covered by a policy or group of policies attributable to a specific coverage period provided by the policy or policies (02) Paid losses adjusted for changes in the loss reserve for a calendar or financial year period.

UK: Incurred losses stated as a percentage of earned premiums.
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The percentage of losses incurred to premium earned.
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UK: the ratio of losses incurred to premiums earned, expressed as a percentage.
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The ratio of losses sustained as compared to money earned from premiums.

Doctrine mean ing indemnity from another source. It must be distinguished from subrogation. If the insured receives any sum, before or after a loss, that reduces his actual loss, he must credit the insurer with that sum. For example, an employer holding salary otherwise due to a defaulting employee must deduct the relevant sum from any claim under a commercial guarantee.
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The liability of insurers under a contract of indemnity is to make good the insured’s loss. If the insured’s loss is made good aliunde (from another source) the insurer’s entitled to credit accordingly for any sum received.

Commission advanced by a life company to an intermediary on the understanding the company can clawback the whole or part of the commission if the policy lapses within a specified period of time.
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commission paid to an agent in advance but subject to the condition that it shall be repaid if the premium by reference to which it is calculated is not paid by the policy holder, for example, because the policy is allowed to lapse.

Imposed by liability (re)insurers to put a ceiling on their potential liability. Public liability insurers usually limit their liability in respectof the damages and claimant’s costs arising from any ‘one occurrence’ with no limit for the period of cover. In addition the insurer pays the insured’s own costs but some liability policies are ‘costs inclusive’. Under products liability and professional indemnity policies it is usual to impose annual aggregate limits per-occurrence limit. Some policies may contain both per-occurrence and annual limits. ‘Inner’ or ‘sublimits’ may be applied to particular forms of loss (e.g. financial loss cover). with no

In a business interruption insurance, it is the period beginning with the occurrence of the damage and ending not later than the end of the period stated in the policy as the maximum indemnity period, e.g. 24 months. The period reflects the time needed to restore the business to its preloss trading level and is chosen by the insured.

Adviser able to offer a full range of products from financial services companies or from a selected panel on grounds of merit. IFAs may work on their own account or for firms. Key principles they must follow include: ‘know their client’ by means of a fact find to form a comprehensive view of the client’s needs in order to offer ‘best advice’. IFAs can be remunerated by commission and/or fees. He must give full details at the outset of fees and, under the FSA’s disclosure rules, full details of any commission they will receive on recommended transactions. Regulated by the FSA, they must contribute to an industry wide compensation scheme.
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an intermediary who provides potential investors and policy holders with advice on a range of products from different companies (contrast tied agent).