A test used in the employee/employer relationship. It seeks to establish whether a person works on their own account or as an integral part of the employer’s organisation. The test is likely to succeed if the relationship is a continuing one between the parties. If the individual’s activities are restricted to one employer and the individual carries no financial risk the individual may be deemed to be an employee. Denning L. J. compared a taxi driver with a chauffeur to make this point (Stevenson, Jordan and Harrison Ltd v. McDonald and Evans).

The general term for intangible property rights which are a result of intellectual effort. Patents, trademarks, designs and copyright are the main intellectual property rights. See INTELLECTUAL PROPERTY ASSET PROTECTION; INTELLECTUAL PROPERTY LITIGATION PROTECTION.
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Ownership of the legal rights to possess, use or dispose of products created by human ingenuity including patents, trademarks and copyrights.

Cover that focuses on the revenue streams generated by Intellectual Property (IP) rights and their perceived value. The basis of indemnity is tailored to individual circumstances, and will vary from: (a) reimbursement of research and development costs – for IP still in development; (b) loss of projected future earnings where products are newly launched; (c) loss of profit calculated on historic earnings – for mature products. A legal audit takes place before cover is granted.

Covers businesses against the legal costs and damages that can arise from an IP litigation action. The scope of cover varies but generally embraces: 1. Exploitation agreements in terms of the fees and expenses in enforcing the contractual terms inherent in agreement. Cover may include defence costs when the insured has unintentionally breached an agreement. 2. Defence fees and expenses incurred in defending a claim by a third party that the products or processes used or sold by the insured infringe IP rights. Cover may include the damages that the insured would pay if the defence is unsuccessful. 3. Invalidity/ownership professional fees and expenses in defending challenges to ownership, validity or title to IP where rights have already been granted. 4. Pursuit fees and expenses pursuing those who have infringed the insured’s IP rights.

A rule of construction. Where possible the words of the policy must be construed liberally so as to give effect to the intention of the parties. In insurance the parties intend to make an insurance contract and any inter pretation that is contrary to the real intention of the parties is not to be adopted.

1. Reinsurance clause under which the reinsurer and the reinsured share any interest awarded on damages in proportion to their respective shares of the actual loss in those cases where the reinsured’s net loss exceeds a given level, e.g. £250,000. In long-tail liability business large claims may take years to settle and interest may be awarded. 2. Treaty clause describing the business and limits covered.

The profit attributable to a life insurer earning a higher rate of interest than that assumed at a previous valuation. The profit becomes a part of the surplus.

Life insurance bonus calculated and paid at the time of a claim on with profits policies maturing or becoming the subject of a death claim during the interval between two bonus declarations.

Allows a pension scheme to be set up on the basis of very general terms. The detailed rules are set up later in a definitive trust deed.

UK: A ‘middleman’ through whom the insurance is arranged.
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US: A reinsurance broker who negotiates contracts of reinsurance on behalf of the reinsured, usually with those reinsurers that recognize brokers and pay them commissions on reinsurance premiums ceded. The intermediary also acts as a conduit through which communications between the insurer and reinsurer are passed, including the payment of premiums by the reinsured to the reinsurer and the collection of losses for the reinsured from the reinsurer.
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REINSURANCE: A third party (usually a Reinsurance Broker) in the design, negotiation, and administration of a reinsurance agreement. Intermediaries recommend to cedant the type and amount of reinsurance to be purchased and negotiate the placement of coverage with reinsurers.
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A third party in the design, negotiation, and administration of a reinsurance agreement. Intermediaries recommend to cedants the type and amount of reinsurance to be purchased and negotiate the placement of coverage with reinsurers. At Lloyd’s of London, called a broker. See Brokerage market and Direct market.
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UK: an agent or broker through whom a contract is arranged.
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Any person who, or organization which, gives advice by way of directly offering, advertising or on a person-to-person basis in respect of an insurance product and includes the promotion of such a product or the facilitation of an agreement or contract between an insurer and a customer. Intermediaries are generally divided into several classes. The most common types are “Agents” (which generally include Corporate Agents and sub-agents) who represents the insurer and “Brokers” who represent the buyer in dealings with the insurer. (ii) A reinsurance broker who negotiates contracts of reinsurance on behalf of the insured. These Transactions normally take place with those reinsurers that recognize brokers and pay them commissions on reinsurance premiums ceded.
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MEDICAL,USA,REFERENCE: See: fiscal intermediary (FI) .