Liability policy clause prohibiting the insured from compromising or settling any claim or admitting liability without the written consent of the insurer. The clause is not contrary to public policy and the insurer does not have to show that he was prejudiced in order to rely on it.

An annuity under which the payments end with the final payment preceding death. No pro rata amount is paid to cover the period between that payment and the time of death.

Authorised motor insurers and employers’ liability are restricted in their ability to avoid liability under policies covering compulsorily insured liabilities. Where a claim is met solely because of the nonavoidance provisions the insurer has a right of recovery against the insured.

Separate policies covering the same property but where the overlap is not complete as one policy may be specific (insures A) and the other more general (insures A, B and C). If A is damaged contribution may arise subject to the two conditions of average.

A non-consumer sale takes place when the purchaser buys the goods for his business. All businessto-business transactions are non-consumer sales. The seller is permitted to exclude his liability for the implied terms under the Sale of Goods Act 1979, fitness for purpose and satisfactory quality, provided that the exclusion clause passes the test of reasonableness. Compare with consumer sales.

Pension schemes and employee benefit plans when the cost is wholly borne by the employer. The term does not apply to contributory schemes under which contributions are suspended during a contribution holiday.

Duties of a personal nature. The person responsible has a duty to see that proper care is taken and, even though he may engage a contractor to carry out the duties, he remains liable for any breach of duty. For example, a principal may engage a contractor to perform acts involving strict liability as in Rylands v. Fletcher.

Loss in which the entire shipping package and its contents fail to arrive at its destination. Compare with short delivery.

Innocent non-disclosure by the proposer before the insurance contract has been concluded. If it relates to a material fact, the insurance will be voidable ab initio at the option of the insurer. If the insurer exercises the option the full premium will be returned. See UTMOST GOOD FAITH.
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Innocent omission by a proposer for insurance to disclose a material fact relating to the risk proposed.

FSMA, s.327(6) states that activities must not be of a description, or relate to an investment of a description, specified in an Order made by HM Treasury for the purposes of this sub-section. This coupled with the restricted activities of the designated professional bodies will prohibit exempt professional firms from carrying on specific types of regulated activity.