The concept of polarisation was introduced by the preFSA regulators making it mandatory for financial advisors to be either independent or tied to one company. The FSA has depolarised and restricts an authorised representative to one principal for investment business for retail clients while able to access the products of other providers through their princip There is no limit on the number of principals in regard to commercial customers. Authorised persons are not restricted as to number of principals in regard to non-investment general insurance contracts but the principals enter into a multiple-principals agreement to facilitate the supervision of the authorised person concerned.

An Act enabling the assignee of a life policy to sue in his own name provided that he has an equitable right to the proceeds and has given the insurer written notice of the date and purpose of the assignment. The assignee has no title until notice is given and will find that ‘priority of notice regulates the priority of the claim. The assignment can be by endorsement or separate document.

Policy whereby the insurer waives proof of insurable interest when settling a claim. The policy is unenforceable as it is a wagering contract but is otherwise valid. PPI policies are significant in maritime trade where cargo changes ownership and it would be difficult to prove an interest at a particular time. A PPI clause is attached to the policy, otherwise known as an ‘honour policy’, peculiar to marine insurance.

UK: 1. The period between inception or renewal date and expiry of an annual policy. 2. A term used for certain loss statistics, it relates to the calendar year or accounting year in which the commencement date of the policy falls and may include policies issued for varying periods of time.
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Period between a Policy’s anniversary dates.
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The 12-month period between the policy’s anniversary dates.
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REINSURANCE: The year commending with the effective date of the reinsurance policy or with an anniversary of that date.
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MEDICAL,USA: Twelve-month period between an insurance policy’s anniversaries.
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Unique to the insurance business, this is a means of cost accumulation in which the aggregate transactions of all policies becoming effective in a given year determine the financial performance of those policies.

A large part of the investment earnings of non-life insurers comes from the administration of what is called the policyholders’ equity’ in the assets of the company covering the unearned premium reserve and outstanding claims.

Equates the price charged for using environmental resources with the cost to society. Charges may be direct through taxes on pollution-generating processes or indirect through the purchase price of licences entitling the holder to generate specific quantities of pollutants. Another approach is to make polluters strictly liable for the injury/damage that they cause, leaving them to carry the risk or undergo the scrutiny of an insurer. See ENVIRONMENTAL PROTECTION ACT 1995.

UK: Damage to land, water, property or the atmosphere by the disposal of waste materials or the release of toxic, corrosive, ionising, irritating, thermal or other noxious or offensive substances. The environment can also be impaired by noise or vibration. Pollution causes direct (bodily injury, damage to crops) and indirect (loss of profits due to business interruption and clean-up costs) costs. Statutory control comes through the Environmental Protection Acts 1990-95 invoking ‘the polluter pays principle’.
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US: The contamination of an environment by substances regarded as pollutants. Liability from pollution is normally excluded to some degree by the general, auto, and umbrella liability policies. In recent years, insurers have attempted to introduce strict exclusionary language into these policies, making it necessary for insureds to seek coverage under separate “environmental impairment liability” policies.

Public liability clause excluding liability for pollution and contamination unless caused by a sudden, identifiable and unexpected incident ‘happening in its entirety at a specific time and place during the period of insurance. All pollution/contamination arising out of one incident is deemed to take place at the time of the incident. The clause is more widely used than SEPTIC. The aim is to exclude gradual pollution from the cover. See ENVIRONMENTAL IMPAIRMENT LIABILITY; POLLUTION INSURANCE.

Covers loss or damage to the vessel following governmental action to prevent or mitigate a pollution hazard or damage to the environment or threat thereof. The government’s act must flow directly from damage to the vessel for which the underwriter is liable. (Clause 5 International Hull Clauses).