Condition in a property-related deed that limits the use or development of land/buildings by subsequent purchasers. The encumberance affects the marketability of the title and creates a risk, insurable under a restrictive covenant indemnity, for anyone who infringes it.

Indemnifies the insured in the event of any third party attempting to enforce a restrictive covenant. The breach may be either an existing breach or a forthcoming development of the property of which the insurers were aware at inception. Mortgagee’s interests and successors in title are automatically covered. The single premium policy runs in perpetuity and includes the insured’s costs in defending a claim.

Liability term excluding liability arising out of particular work circumstances, e.g. builder’s policy may exclude work more than 40 feet in height or working on high structures like blast furnaces. There is nothing in compulsory employers’ liability legislation to prohibit such restrictions (Dunbar v. A & B Painters (1985)), but they are not favoured and more likely to be applied to public liability cover.

A policyholder or potential policyholder acting outside his trade, business or profession. FSA rules require that retail customers be supplied with: a policy summary; price information; details on how to claim; policy document; renewal information; details of mid-term changes. All private individuals are eligible complainants from a complaints perspective.

UK index of consumer prices widely used for indexation. There are several variants from the headline rate such as RPIX, i.e. prices excluding mortgages.

Member’s benefits from previous occupational schemes, personal pension schemes or retirement annuity policies. Where the existing scheme has an accrual rate better than one-sixtieth per year, retained benefits, when taken with existing benefits, must not exceed two-thirds of final remuneration, i.e. the maximum under a tax approved scheme.

Given by an insurer on behalf of a contractor in exchange for the release of retention monies from the employer or main contractor. The bond is equal to the monies released and is circa 2.5 per cent of the construction contract value. See PERFORMANCE BONDS.

Replaced by personal pension plans in 1988 but pre-88 plans still run. They restrict the holder to retirement at age 60 or after. Retirement at 50 is possible only if transferring to a personal pension but the tax-free cash entitlement is calculated differently. RAPs, also called Section 226 annuities, are not subject to the earnings cap.

They may include: purchase of an annuity; commutation of part of pension for tax-free lump with reduced retirement annuity; phased retirement; income drawdown; self-investment up to age 75; leave the fund fully invested until age 75.

UK: Date that defines the extent of cover in time under claims made liability policies. Claims resulting from occurrences prior to the retroactive date are not covered notwithstanding the notification of claims during the policy period. Retroactive dates are commonly stated to be the inception date of the first year of cover. See ‘NOSE.
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REINSURANCE: The date on a claims made policy or reinsurance contract which triggers the beginning period of coverage for occurrences commencing prior to the effective date of the policy. A retroactive date is not required. If one is shown on a claims made policy, any claim made during the policy period on a loss that occurred before the retroactive date will not be covered. In reinsurance, losses occurring before the contract term are sometimes covered by the addition of “retroactive” coverage to the contract.
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The date that defines the extent of coverage in time under claims-made liability policies. Claims resulting from occurrences prior to the policy’s stated retroactive date are excluded.