Covers losses occurring during the period of the treaty regardless of the date of the claim. The reinsurer’s liability is triggered by an occurrence within the treaty period even though the underlying policy may have been incepted before the treaty commenced as in long-tail claims. Compare with claims-made reinsurance and risks attaching.

The years by which a person’s life expectancy is reduced following injury caused by another person. During his lifetime the claimant is able to recover as a separate head of damages for the loss of earnings during the ‘lost years’ (Pickett v. British Rail Engineering Ltd (1980) A.C. 136). However, the legal representatives of a deceased person can no longer recover damages under this head for the estate (Adminstration of Justice Act 1982).

A combination of with-profit endowment and decreasing term insurance introduced as a part of house purchase schemes.

Variation of low cost endowment under which the premiums in the early years are low on the understanding that later premiums will be at higher than normal level to compensate for the early years reduction. The aim is to assist a person with a limited income but who has prospects of good future salary increases. The sum insured and bonuses are not affected by the low early premiums.

Minimum a person must earn in any pay period before they have to pay national insurance. Reviewed annually.

A ‘nuisance’ peril that may create liability for third party property damage. Construction industry firms face this risk, which can also cause damage to the contract works and the insured’s own property. Insurance can be arranged under JCT clause 21(2)(1) ‘non-negligent’ cover. Ground water is water occupying the pores and crevices of rock and soil as opposed to surface water. Where the work of the contractor lowers the ground water the stability of buildings may be undermined leading to a nuisance.

Method of settlement wher the claimant or beneficiary receives the entire proceeds of the policy at once rather than in instalments. Life policies are usually settled in this way.

Certificate ‘transferring’ pension scheme must supply when a member transfers to another scheme. The certificate shows the maximum available from the transfer payment for the new pension.

The bell from HMS Lutine, a captured French vessel, lost in 1799 when carrying bullion much of which was recovered in 1857-8. The bell now hangs in the ‘Room’ at Lloyd’s above the Caller’s Rostrum and is rung to call attention to very important announcements such as casualties and arrivals of missing ships. It is rung once for bad news and twice for good news.