An extended warranty covering domestic appliances as chosen by the insured and is not related to a particular contract of sale as with a connected contract. The policy is renewable annually and is usually issued by an insurer and not a retailer.

Marine and transit insurance term used where a single movement of goods involves different insurers in different parts of the transit.

Captive insurance company formed to meet the common needs of a group of independent companies or professional practitioners.

US term describing a policy covering a range of perils as opposed to one covering a single peril or restricted range of perils. The UK equivalent is comprehensive.

Two separate events combine to trigger a payment by the insurer only when the second event occurs. The latter is frequently linked to a metric or index outside the control of the insured in order to avoid moral hazard but correlates closely with the policyholder’s financial interests. For example, a dual trigger policy for a private hospital’s medical malpractice risk pays: (a) if the actual malpractice claims exceed a certain amount only if (b) the hospital’s equity portfolio value falls below a specified level during the same period.

Policy that runs for a fixed number of years. At Lloyd’s any ‘non-cancellable’ policy running in excess of 18 months is called ‘multi-year’.

Contracts running for more than one year, not subject to annual renewal, that ‘bundle’ more than one class of business. Such policies produce a saving for the insured as losses over longer periods, (e.g. five years), are more predictable than losses over one year and the insurer reduces the contingency loading accordingly.