Cargo policy clause printed in red to remind the insured of his obligation to preserve his right of recovery against a carrier or bailee for the benefit of the insurer.

A life insurance term referring to an extra risk which is at its greatest at the inception and then decreases, e.g. tuberculosis after treatment.

Theoretical pension scheme to which reference is made to ensure that members of contracted out salary related schemes post-April 1997 will receive as much in benefits as under the reference scheme to comply with PSA93, s.12B. The scheme actuary must certify that the scheme meets these benchmark requirements.

Station whose statistics are used for the purpose of calculating average daily temperatures and other meteorological variables for the purpose of weather derivatives. All such contracts are based on the actual observations of one or more stations.

Engineering insurance covering breakdown and/or accidental damage to plant and the resultant damage to own surrounding property. A monetary excess applies. The policy is suitable for refrigerating machinery used with cold rooms or chambers for the storage of frozen or chilled goods or in connection with air conditioning units for the control of temperature in offices and other buildings.

Runs Pension Schemes Registry as a part of Opra.

Order (the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; SI2001/544) made under the Financial Services and Markets Act 2000 that specifies the activities, including insurance, regulated by the Financial Services Authority.

Any type of business falling within the scope of FSMA. The Act contains a general prohibition on the carrying out of such an activity in the UK unless it is authorised or exempt. The wide-ranging activities include: accepting deposits; acting as a trustee in an authorised unit trust scheme; effecting or carrying out insurance contracts; dealing in investments as principal or agent; managing the underwriting capacity of a Lloyd’s syndicate as a managing agent; arranging deals in contracts of insurance written at Lloyd’s, etc.; agreeing to carry on a regulated activity which is carried on by way of business. Insurance mediation will be regulated from 2005. (Visit www.fsa.gov.uk).

The 18 classes of general business subject to regulatory control under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2000. See GENERAL INSURANCE BUSINESS.