An aviation insurance term to describe risks which, although serious, are not potentially catastrophic.

This principle is bound up with subrogation. Where the same loss or damage becomes the subject of a claim under both a first party policy covering the owner’s interest and another person’s liability for that loss/damage, the liability insurer ultimately pays for the loss as their insured is primary liable. The property owner has no direct claim against the liability owner, only against the third party.

the FSA’s Principles for Businesses manual, setting out the fundamental obligations for all firms under the regulatory system.

The employer who has special rights and responsibilities, e.g. appointing trustees, when a number of employers combine to run a pension scheme.

A clause in a public or employers’ liability extending the insured’s policy to provide an indemnity, where any contract so requires, to any principal in like manner to the insured. The principal must observe the terms and conditions of the policy and agree that conduct and control of any claims shall be vested in the insurer. The clause meets the requirements made of contractors to indemnify their Employers in accordance with Joint Contract Tribunal contracts.

A phrase used when the principal (i.e. the employer) and not the contractor arranges the insurance even though the standard form of contract, e.g. Joint Contract Tribunal, normally places insurance obligations on the contractor. It often means a combined contractors’ ‘all risks’ public liability being effected. This arrangement is sometimes called ‘wrap-up cover.

document the FSA requires life insurers to produce showing how they run with-profits business; its aim is to improve policyholder protection, insurer governance and transparency.

Eleven principles detailed in Block 1 of the FSA Handbook. They are a general statement of the fundamental obligations of firms under the regulatory systems. The principles embrace, inter alia, standards of care, integrity, customer relationships based on trust and dealing with the regulators in an open and cooperative manner. Breaching a principle makes a firm liable to disciplinary action. (Visit www.fsa.gov.uk).

Priority to pay some liabilities, e.g. guaranteed minimum payments, before others when a pension scheme is wound up. If the assets are insufficient to meet all liabilities the priority rule applies. The trustees must follow this scheme rule in deciding the order in which they settle scheme liabilities.