UK: The amount retained by the reinsured for its own account after coinsurance, proportional or acultative reinsurance have been taken into account. See NET RETAINED LINES CLAUSE.
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The final amount of insurance retained by the Company after reinsuring such amounts as it did not wish to retain.
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The insurance a ceding company keeps and does not reinsure.

The remaining residual risk after the intrinsic hazards of the business or organisation have been reduced in terms of nature, scale and probability of occurrence by the precautions taken by the insured. Ascertaining the net risk is a part of risk assessment.

Occurs when the early years’ premiums under a contract, less the initial expenses and any early claims, are not sufficient to cover the reserve, plus any explicit required solvency margin, that the company wishes to set up. An expanding life insurer may find that the unexpired premium reserve is increasing faster than it is being released making it difficult to achieve the required margin of solvency. Zillmerization allows for this situation. Reinsurance on a risk premium basis is another possible solution.

The amount estimated as being sufficient to provide pension benefits for future entrants, including any contribution required from the members.

Cover for household contents where an item lost or destroyed would be replaced with a new item, with no deduction for wear and tear. It is ‘replacement as new’ but if the ‘new’ is superior to the ‘old’ the insured pays for ‘betterment’. Business insurance equivalent is the replacement clause. Sums insured must represent full replacement costs.

An indemnity provided by the Crown to pay for the financial consequences of alleged negligence on the part of medical practitioners occurring in NHS hospitals. It does not cover private practice, ‘Good Samaritan’ acts or other work undertaken outside the practitioner’s NHS contract and neither does it include General Medical Council or disciplinary hearings or any criminal charges resulting from clinical practice work in the NHS.

A goods in transit policy warranted that vehicles would be in ‘locked garages at night’, except when employed on night journeys, but then never left unattended (A. Cohen & Co. Ltd v. Plaistow Transport Ltd (Graham, Third Party) (1968)). McKenna J. stated, obiter, that night should be construed by reference to lighting up time.

Goods in transit clause to warrant that vehicles left loaded overnight must not be unattended unless locked and immobilised in accordance with any such provision in the policy. It may also be required that such vehicles be left either in a building or yard, which is also securely closed and locked, or in an attended official car park. See NIGHT.

Certifies that a transfer value is not to be used to provide retirement benefits in lump sum form, such as on a transfer from an FSAVC scheme.

Leakage through the failure of the nipple joints of boiler or pressure plant. The cost of repair can be covered as an extension to a boiler and pressure plant policy. The extension covers ‘self damage’ only. Damage consequent upon the leakage is not covered as separate water damage cover is available under burst pipes cover. See ADDITIONAL PERILS.