The maximum sum an insured may collect, or for which an insured is protected, under the policy. It is a ‘sum insured’ under property insurances but a ‘limit of indemnity’ under liability policies. The liability limit may be: per policy, per event, per occurrence, per year, per ‘originating cause’ or, by way of sub-limit, per specified type of loss. See COSTS INCLUSIVE INDEMNITY; COMBINED SINGLE LIMIT.

Specifies the maximum periods from the accrual of the cause of action for which claims will be heard before becoming statutebarred. The main periods are: six years for simple contracts and claims for personal property; 12 years for contracts by deed or concerning real property and land; and three years for personal injury (but the court can extend this period (s.11)). If the claimant is unable to take action at the time of accrual because of a disability (e.g. mental incapacity), the time runs from when the disability ends. By s.11 the time runs from the cause of action or when the claimant first had significant knowledge of his right of claim and the identity of the defendant. The Latent Damages Act 1986 deals with latent damage cases.

A binding authority that does not permit the coverholder to underwrite risks on behalf of a Lloyd’s syndicate without prior agreement or confirmation by the syndicate.

Reinsurance where the cover provided is more limited than cover under the primary policy. Example: a hull is insured ‘named perils’ including partial loss under the primary policy but reinsured ‘total loss only’. LCR safeguards the reinsured’s treaty programme from a major loss by redirecting the total loss claim to LCR, normally arranged facultatively.

A life policy under which the premium is payable for a limited period only and not the full duration of the policy term; e.g., a whole life policy may be written with premiums terminating at age 65 while the policy remains in force.

Means the London Insurance Market Network, a computerised network. It merged under WISE (World Insurance E-Commerce) with two other leading electronic networks in 1999.