Cost-saving agreement that operates when a motor vehicle collides with immobile property (e.g. buildings and fences) that may be insured against impact damage. The terms of the agreement vary between insurers but normally the motor insurer pays 75 per cent of the damage to immobile property regardless of actual liability.

1. Engineering insurance term insuring ‘damage by physical impact to surrounding plant or property belonging to the insured or held in trust by the insured or on commission or for which the insured is responsible resulting from fragmentation of any part of any insured item of plant. The cover can be applied to: boilers and pressure plant; cranes and other lifting machines; lifts and hoists; and electrical and mechanical plant. 2. An additional peril included in a ‘named peril’ household policy. It covers impact damage caused by vehicles or aircraft or anything dropped therefrom. Damage caused by falling trees and branches is also covered. 3. Impact cover is also added to named perils commercial property insurance and covers the risk of third party (and sometimes own) vehicles and animal damage to the insured property.

A US term describing the financial position of an insurer whose net current assets are less than its fully paid-up shares.
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When liabilities and claims consume an Insurance Company’s Surplus the capital is impaired. Suspension of the right to do business normally follows.

An enhanced annuity granted to a person with a shortened life expectancy. Serious health conditions, e.g. cancer, heart disease, as well as some lifestyle habits may bring annuitants into this category.

Persons with health conditions that limit their life expectancy. They cannot secure life insurance on normal terms but get better annuity rates.
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Persons who suffer from some condition that may shorten their life.

Contractual terms that by law are tacitly binding and do not have to appear in the contract. Conditions can be implied by statute (e.g. Sale of Goods Act 1979). The following conditions are implied in insurance contracts: (a) that the subject matter of insurance is in existence at the date of effecting the policy; (b) that the insured has an insurable interest; (c) that the parties observe utmost good faith towards each other at all material times and in all material particulars; and (d) that the subject matter of insurance is so described as to clearly identify it and define the risk undertaken by the insurers.

A clause in a policy, not subject to average, whereby average can be imported if the policy is liable for a loss also covered by another policy that is subject to average. The policies then contribute on an equal footing.
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A condition in a policy whereby if a claim is covered by two policies one of which is expressed as subject to average and one not, the latter is made subject to average I like manner.

Issued by HSE inspectors ordering that Health and Safety at Work, etc., Act 1974 contraventions be remedied within a specified time. The notice is served on the person deemed to be contravening the legal provision, or on any person on whom responsibilities are placed, e.g. an employer, an employed person or a supplier. The person may be prosecuted instead of, or in addition to, being served with a notice. Insurers usually provide cover in respect of prosecution defence costs.

Knowledge of one party that is deemed to be possessed by another because of their relationship. An insured may wish to impute knowledge to the insurer on the grounds that their agent actually possesses that knowledge. In insurance, the position is complicated because for some purposes the intermediary acts as agent of the insurer while for others (e.g. carrying out instructions to effect the insurance) he is agent of the insured. The party relying upon the doctrine of imputed knowledge must prove the existence of an agency in relation to the point at issue.