Part of the UK social security ystem providing benefits in various forms, i.e., sickness, industrial injury, unemployment, pensions, maternity and death. Apart from contracting out provisions participation is compulsory for designated categories of people. The rates of contribution vary according to class but are standard within each class. Contributions are deducted from earnings in the case of employees whose employers also contribute.

A hazard caused by natural forces that may be climatic, oceanographic or geological in nature. Contrasts with man-made hazard.

Outmoded method of charging life insurance premiums. Each premium is related to the current risk of death and therefore increases year by year. At later stages the premiums often become prohibitive as there is no reserve or surrender value. It differs from assessmentism in that no allowance is made for expenses. The level annual premium system overcomes the problem of the natural premium system.

The risks arising when a vessel is navigating or at sea as distinct from the risks arising in port or when the vessel is laid up.
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The risks incidental to a vessel navigating or at sea, as opposed to those arising while the vessel is in port or laid up.

Misleading statements made in circumstances in which a duty of care exists.. They often cause ‘pure’ economic loss (i.e. financial loss unconnected with physical injury or damage). Claimants, not in a contractual relationship with professionals, must establish a tort liability on the basis that the defendant breached a duty of care causing loss. This is the only certain circumstance in which the law recognises a liability for pure economic loss in negligence. The basis of liability has been that the person making a statement outside a contract has ‘voluntarily assumed the risk’ and, having done so, must exercise reasonable care. See NEGLIGENCE; PROFESSIONAL INDEMNITY INSURANCE.

Assets comprising the fourth link in the Lloyd’s chain of security. On 31 December 2002 they amounted to £563m (the central fund of £467m plus other Society assets of £87m). They are the central assets of Lloyd’s less the liabilities of the Society (less the liabilities of the members) valued in accordance with the Lloyd’s Sourcebook (LLD 9-15). For margin of solvency purposes they must cover, in the aggregate: members’ defined deficiencies on general and long-term business, the Society’s required minimum margin and the excess (if any) of €3,000,000 (when converted at a designated rate to sterling) over the sum of members’ margins for long-term business and the amount of any increase in the Society margin invoked under the relevant rule. If net central assets fall below the required amount, the Society must inform the FSA.

This is usually taken as gross premium income less premium returns and rebates, reinsurance premiums, and often production costs, brokers’/ agents’ commission, etc.

The income that can be used to assess the maximum contribution that can be made to a personal pension scheme by the self-employed or employees in non-pensionable employment. In the case of the self-employed this is income (tax schedule D) less business expenses. For the employed it is income (tax Schedule E) including profit-related pay and taxable benefits.

Allows the reinsured to effect other reinsurances in priority so that the treaty itself protects only the net account, e.g. the treaty comes into play after proportional or facultative cessions. The insolvency of other reinsurers clause is embedded within this clause.