Life insurance arranged without the proposer being medically examined. The insurer requests a medical report from the proposer’s doctor with the proposer’s permission. Life offices have their own non-medical underwriting limits expressed in terms of age and sum insured, and type of policy.

An alternative term for a non-profit policy also called a without profits life insurance policy.

Earnings such as overtime and bonuses not taken into account when calculating pension scheme benefits or contributions.

Employment where either the worker chooses not to join an occupational pension scheme or there is no available scheme for him to join. Earning from such employment can be included in net relevant earnings. and impose conditions or warranties.

A life insurance policy that does not participate in the divisible surplus so that the amount payable is the sum insured only. Alternatively called a non-participating policy.

Buildings of unusual construction or incorporating materials more combustible than those used in standard construction. They fall below ‘grade 2’, i.e. buildings made of predominately non-combustible materials. The fire insurer is likely to increase the premium, and may restrict the cover

A proportional reinsurance covering claims only to the extent that they exceed a certain amount or ration, e.g. a liability insurer may reinsure all losses (or a proportion thereof) in excess of £1m, the excess point, up to £2m. Excess of loss has many applications; catastrophe reinsurance, per occurrence reinsurance, per risk reinsurance, aggregate excess of loss, excess of loss ratio. Cover is normally by means of treaty.

Expenditure that is regular, out of income and does not reduce the transferor’s normal standard of living, can be transferred from one person to another free of inheritance tax. Life insurance premiums may qualify for this exemption.

Earliest age at which a pension scheme member becomes entitled to receive full retirement benefits other than the guaranteed minimum pension. This definition is relevant for preservation and contracting out purposes. Each scheme has its own NPA; members retiring earlier normally get a reduced pension.