Pension scheme with assets exceeding those required to meet liabilities. See ACTUARIAL SURPLUS.

Excessive heating. If a boiler or self-fired pressure vessel accidentally suffers a general deficiency of water while working, severe damage may be caused to the boiler shell, firebox, etc. The risk is insurable as a whole or, in the case of a multi-tubular boiler, limited if desired to the overheating of the tubes only. The cover is for ‘self damage’ only and is put into effect as an extension of the boiler and pressure plant policy.

The parallel payments that occur when, following the pensioner’s death within the guaranteed pensions period, the payment of the pension runs concurrently for a time with a dependant’s pension.

A rule of construction to the effect that where there is a contradiction between express and implied terms the express words will prevail.

Deposits required under local legislation to be made by insurers in overseas countries for the protection of locally based policyholders.

The ECGD provides political risks cover against expropriation, war and restrictions on remittances. Breach of contract cover is also considered case by case. Cover protects investors in terms of equity in, or loans to, foreign enterprises. Bank portfolio loans cover is also available to banks in support of bank lending to overseas projects where there is no UK sponsor or UK export. The initial duration of ECGD cover is 15 years.

A public liability policy extension indemnifying any director or employee (including family members) of the insured during temporary visits anywhere in the world on the insured’s business. The extension applies to ‘off duty’ activities outside the scope of the main indemnity clause.

When overtime is worked to merely expedite the repairs so that the owner may more speedily employ the ship, the excess cost is not recoverable from the insurer. However, where liners with advertised sailing dates are involved the insurer admits the overtime expenditure. ‘Liners’ means passenger and cargo vessels.

Occurs where the volume of business written on behalf of a Lloyd’s member exceeds allocated premium limit. In response Lloyd’s demands additional security to back the additional risks underwritten. The increase may be the result of poor administration, a fall in exchange rates or coverholders writing larger volumes of business than expected under binding authorities.