Peril that has to be interpreted against the backdrop of qualifying words. The insured must show that his loss was caused by the peril as qualified. The standard fire policy contains qualified perils – fire is covered only if not occasioned by or happening through, riot and civil commotion. An insured must therefore show that his fire damage was ‘fire damage not caused by riot or civil commotion’. See ONUS OF PROOF.

A life insurance policy certified by the Inland Revenue as complying with the ‘Qualifying Policy Regulations’. Proceeds on maturity or death will be tax exempt.

Length of time an employee has to work for an employer before becoming eligible to join the employer’s pension scheme. Also refers to the service to be taken into account to entitle a member to a ‘short service benefit.

A year when somebody has paid national insurance every week. If necessary an individual can clear any arrears by a single payment. No payment is required in respect of weeks credited to persons in receipt of social security benefits.

Occurs when two parties have a simultaneous insurable interest in the same subject-matter. The buyer of cargo may insure the cargo, but the seller may also insure his contingent interest to guard against default by the buyer. Dual but not identical insurable interest also arises with mortgagors (full interest) and mortgagees (interest to the extent of the loan).

Four days in the year once linked to the renewal of annual policies and other transactions. Fire and accident insurers extended the first period of annual insurances to the nearest quarter day. In England and Ireland – Ladyday (25 March); Midsummer (24 June); Michaelmas (29 September); Christmas (25 December). In Scotland: Candlemas (2 February); Whitsun (15 May); Lammas (1 August); Martinmas (11 November).

A professional indemnity clause whereby the insurer agrees to pay any claim without requiring the insured to contest it unless a QC advises that it can probably be successfully defended.

in the insurance industry generally, a form of proportional reinsurance indemnifying the ceding company against a fixed percentage of each risk; in Lloyd’s, a contract under which a member makes arrangements for another person to take over their rights or liabilities from syndicate participations, usually as a means to exit the market.

Basic form of proportional reinsurance. Allocates risk, losses and loss adjustment expenses between the cedant and the reinsurer on a fixed percentage basis defined in terms of the policy limit and subject to an allowance for the cedant’s expenses. QSRs boost the cedant’s capacity and reduce the volatility of earnings.

A slip upon which a Lloyd’s underwriter presents terms for consideration by the oposer without either party being committed to a transaction.