A risk which, as a result of the insurer’s advice or insistence, is protected by loss prevention measures as in fire insurance (e.g. sprinkler leakage system installed) or theft insurance (e.g. intruder alarm installed).
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A property risk which is within the geographical area protected by a fire department.

Mutual associations protecting shipowners in respect of risks not covered in the marine insurance market. The shipowner enters his vessel on a tonnage basis that determines his levy or call at the beginning of the financial year. If claims are heavy a further levy may be demanded. The most important P & I classes are: 1. Protection. Covers shipowner in respect of liability for loss of life or personal injury, damage to immobile objects, onequarter Running Down Clause, oil pollution and life salvage. 2. Indemnity. The basis is ‘pay to be paid’ and means reimbursing shipowners who have indemnified cargo owners for damage caused by negligence of the crew. There are two other classes: war risks and freight war risks. P & I Clubs accommodate 90 per cent of the world’s merchant tonnage. See BAIL CLAUSE.

Commercial policy clause requiring that all or specific protections agreed at the commencement of the policy be maintained in full and efficient working order throughout the currency of the policy. If the clause is interpreted as a warranty, the cover terminates from the date of breach and the insurer does not have to show a cause and effect relationship between a breach and a loss. In some instances the breach has been held to be a suspension of cover so that when compliance is resumed subsequent losses will be covered. See DESCRIPTION OF RISK CLAUSE.

A marine insurance claims document in the form of a statement sworn by a ship’s master before a notary giving details of the casualty. He ‘protests’ innocence of blame for loss or, or damage to, the ship or cargo. If fuller information is required, a further statement, an extended protest, is made.
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Customs allows for a refund of an over payment of duty if filed within 90 days of liquidation.

Credit insurance term describing a long overdue payment, e.g. failure by a debtor to pay the insured within 90 days of the due date. Protracted default is an insured event.
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Credit Insurance protects the creditor against non-payment of a sum due, whether the nonpayment arises from insolvency on the part of the debtor or his failure to pay over a substantial period, usually 90 days after due date. This latter is called protracted default.

UK: 1. An amount retained as reasonably necessary to provide for asset depreciation, or any liability or loss which is likely to be incurred. 2. In a pensions context, the unfunded obligation to provide employees’ pensions and shortfall of funding payments over the amount calculated by the actuary as being his estimate of the costs of providing pensions. Pensions costs in employers’ accounts should be actuarially assessed and included in the employer’s balance sheet under ‘provisions for liabilities’ as ‘pensions and other similar obligations. 3. Term in a policy, contract or statute.
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MEDICAL,USA: Section of an insurance contract describing in detail a benefit, condition, feature, or requirement of the policy. Also called clause , insurance clause, or insurance provision.
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UK,REFERENCE: See: reserve.

Where there is a chance that, in the future, an injured person will suffer serious deterioration in his condition, the court is empowered to issue a declaratory judgment, which, in the event of such deterioration, enables the plaintiff to apply for a review of the original award. Where the declaration is made, the damages awarded are provisional.