Specimens produced by the OPB and/or the Inland Revenue for certain categories of pensions to facilitate approval and/or the issue of a contracting out certificate or an appropriate scheme certificate.

The process of making dirty money (money obtained illegally) legitimate through a process of placing, layering and integrating that money into the financial system.
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The act of changing the appearance of money that comes from illegitimate sources so that it appears to be legitimate money.

A defined contribution the scheme where member’s contributions (and those of the employer) are invested to build up a pension fund from which a retirement annuity and other benefits can be taken subject to IR limits. The contributions are usually a percentage of the member’s earnings.

An insurer’s definition of money includes cash, bank notes, cheques, postal orders, postage stamps, national savings certificates and holidays with pay stamps, luncheon vouchers and VAT purchase invoices. Cover is ‘all risks’ subject to specific limits depending on the circumstances of the loss, e.g. from a locked safe or a directors home. Insurers normally cover personal assault and theft by employees, primarily a fidelity guarantee risk, is covered only if discovered within 14 days.

Separately capitalised insurer that focuses wholly on one type of business, e.g. bond credit insurance. They are product speciality insurers often working on a wholesale basis.

Mathematical technique that produces numerical solutions for differential equations. It is used extensively in finance for such tasks as pricing derivatives or estimating the value at risk of a portfolio. It is also used in insurance and risk management, typically to solve problems that require the calculation of one or more statistics of a probability distribution.

UK: a factor arising from the character or circumstances of the policy holder, including carelessness or the nature of the business, which may increase the risk assumed by the insurer.
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A hazard that is caused by the morals or attitude of an insured. For example, an insured who is not morally opposed to feigning an illness to file fraudulent medical expense claims.
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As physical hazard relates to susceptibility to fire or wind, the term moral hazard relates to susceptibility to loss through moral lapse of the owner (e.g., burn the house down and collect from the insurance company before losing it in a foreclosure to the finance company).
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UK: Character, habits and actions of insureds and others (e.g. employees, associates) that influence the possibility and extent of a loss. Carelessness, unreliability, poor lifestyle, dishonesty are the unfavourable characteristics that insurers guard against or avoid. Compare with physical hazard.
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Hazard arising from personal characteristics, such as the habits, methods of management, financial standing, mental, condition, or lack of integrity of an insured who may intentionally cause, or hope for, a loss. For example, embezzlement or arson are moral hazards.
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Those personal characteristics of a prospective insured or its employees or associates that may increase the probability or size of an insurance loss.

Relative incidence of disease and accidents in a welldefined class or classes of person. It is set out in statistics based on actuarial practice called a morbidity table and used by health and life underwriters.

A noncontribution clause. Two policies may cover the same property and same interest, one in specific terms and the other in general terms. To prevent contribution, the clause provides that a more specific insurance operates first when a claim occurs. ‘More specific’ refers to the range of property covered and not the range of perils.