Fidelity guarantee policies, such as commercial guarantees, include a clause requiring the employer to assist the insurers in bringing a civil action in the name of the insured employer for recovery of the loss. The use of the term ‘prosecution clause’ has been criticised as it normally relates to criminal proceedings.
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A clause in an insurance policy covering loss by dishonesty which obliges the insured, if so required by the insurer, to prosecute the person alleged to have caused the loss.

Method under which the actuarial liability is the present value of: (a) the benefits for current and deferred pensioners and their dependants, allowing for any future increases; and (b) the benefits which active members will receive for both past and future service, allowing for projected earnings up to their expected leaving dates and, if appropriate, increases thereafter, less the present value of future contributions in respect of current members at the standard contribution rate.

Finite risk cover under which future losses are paid by the financial reinsurer and funded in a smoothing process in the ensuing years. See SPREAD LOSS TREATY.

A life or health insurance reserve estimated to be sufficient to pay future claims. It is the amount designated as a future liability to meet the difference between the present value of projected future benefits and expenses as well as the present value of future premiums.

Length of potential service of a member up to a future age or date. This is used in some instances in working out IR limits on early retirement and by some schemes for other purposes, e.g. calculating incapacity pensions or spouse’s pensions.

UK: a form giving details of the cover available under a policy, optional additional benefits, rebates etc, often printed as part of the proposal form.
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A proposal form which also details the Insurance cover available.
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The disclosure document prepared and distributed by a company in connection with its offer to sell securities. The 1933 Act broadly defines the term to include any notice, circular, advertisement, letter or communication, whether written or by radio or television, which offers any security for sale. The prospectus may not contain any false or misleading information regarding the securities or the offering. In private placements of securities (i.e., securities offerings that are exempt from registration with the SEC), this disclosure document is frequently referred to as an “offering memorandum” or “offering circular.”

A single entity that segregates its assets between different cells. Each cell is used by a company whose risks are not sufficiently large to justify forming their own captive but they get the benefits of self-insurance. The offshore’ legislation, under which PCCs operate, was originally designed for rent-a-captives but is now applied more widely.

Pension under a money purchase arrangement arising from being contracted out scheme. The benefits are derived from the minimum equivalent payments that would otherwise have been paid to the state second pension but for the contracting out.

Pension purchased with the money from protected rights.