Operates as part of the ABI dealing specifically with the life insurance industry. Its elected management committee reports to the full council, which in turn reports to the Board of the ABI.

The accumulated savings and contributions of policyholders held against the life companies’ liabilities to pay future claims. The funds are increased yearly by premiums paid and investment income received, less payments made to policyholders, management expenses (including commission), taxation and transfers to shareholders’ funds, where appropriate. Life funds are credited with all or part of any capital appreciation in asset values.

The person whose life is the subject-matter of the life insurance contract. If A effects a policy on the life of B, his partner, B is the life insured. This is a ‘life of another’ policy.

A life policy taken out by one person on the life of another in whom he has an insurable interest at inception.
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An Insurance Policy taken out on the life of someone else.

Creditor insurance under which a death benefit is added to protection against loss of income following accident, sickness and unemployment.

A mortgage aimed at those who own property but have no income. A mortgage is raised on the property and either: (i) an annuity is purchased and the mortgage, plus interest which is added to the original loan, is repaid on sale of the property, often after the death of the borrower; or (ii) less frequently, the loan is repaid on death or sale together with a fixed percentage growth in the property value with interest paid during the mortgage term. Lifetime mortgages are FSAregulated when the mortgage meets the definition set down in the legislation.

The London International Financial Futures and Options Exchange, the financial and non-financial derivative exchange that launched LIFFE Weather Futures in 2001. (Visit www.liffe.com). See EXCHANGE TRADED CONTRACTS.

Standardised exchange-traded weather derivatives launched by LIFFE for companies seeking to manage weather risk. LIFFE’s contracts are written for London, Paris and Berlin creating a basis risk. The weather index is the monthly mean of daily average temperature not degree days. The instruments are traded freely and are therefore liquid as well as being transparent as live bids and offers can be seen and made in real time on LIFFE Connect.

Covers breakdown but can be extended to cover sudden and unforeseen physical damage to the plant at the premises, temporarily elsewhere and in transit between the two. It also covers damage to own surrounding property resulting from fragmentation, damage to goods being lifted (excluding installed plant and machinery) and third party risks.

Regulations relating, inter alia, to the initial installation of certain lifting equipment. The employer must then appoint a ‘competent person’ to inspect the lifting equipment at agreed intervals. The inspection is often performed by insurance companies. LOLER covers lifts, cranes, lifting and handling machinery in all workplaces. The provisions of PUWER 1998 apply to lifting equipment.