Policy providing a benefit to help the policyholder meet his loan obligations during periods of incapacity through sickness or accident or through unemployment following redundancy. It is a creditor insurance.

The amount of a mortgage expressed as a percentage of the property value or purchase price. A mortgage of £75,000 on a £100,000 property value would mean a LTV of 75 per cent.

A loan facility generally available under a personal pension scheme. Common uses of the loan include purchase of house or business premises (pension mortgages), or new machinery, or meeting short-term requirements. The policyholder has to provide security for the loan, as the pension policy cannot be used for this purpose. A first or second charge on property is normally taken but the lender may take other forms of security. The loan does not have to be repaid until retirement at which time it is financed out of the tax-free lump sum available at that time.

Whole life and endowment policies include a privilege clause undertaking to grant a loan up to 90 per cent or 95 per cent of the surrender value. The rate of interest is determined at the time of the loan. Repayment can be made at any time or when the policy matures. Meanwhile interest and premiums are payable. An alternative way of securing a loan on a life policy is to use it as collateral security when borrowing from a bank.

A policy issued to local authorities to provide an indemnity in respect of third party claims following errors and omissions in respect of local land charges, etc., and notices issued in connection with them.

Lloyd’s term for an unaccredited broker who accesses the Lloyd’s market through an accredited broker.

A guarantee to a local or public authority required under the Local Government Act 1972, s.114, in respect of loss of money or other property due to the dishonesty of officials employed by the authority.

Cargo insurance clause in open covers limiting cover at any one location during transit when the goods are not on the oversea vessel. Shipments may accumulate at one port and the clause limits the insurer’s liability to an amount for any one loss in any one location.
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A clause in cargo open cover or floating Policy which limits Insurance cover whilst goods are accumulated in one location.

Rarely defined, but usually means the international insurance business written in London. It consists of: 1. Home foreign, namely direct overseas business written in the UK. 2. International reinsurance (large volumes of business generally come from the US). 3. Marine and aviation. 4. US excess and surplus lines business. London market premiums earn a gross income about equal to that derived from UK ‘domestic’ commercial business and UK personal lines business.