Clause reading ‘All pollution or contamination which arises out of one Event shall be deemed to have occurred on the date that the insured first becomes aware of the circumstances which have given or may give rise to Pollution or Contamination. The clause was intended to bring gradual pollution into public liability policies, but the restricted reinsurance market meant little take up. See POLLUTION CLAUSE.

Replaced by the Second State Pension (S2P) in 2002 as the earnings-related part of the statement retirement scheme. Rights built up under SERPS are protected.

A life insurance/personal accident underwriting term for the higher risk of accidental death of members of the armed forces.

Overseas (re)insurance business that is transacted in the UK. This cross-frontier business contributes significantly to the UK’s balance of payments. In the EC it is the right of an insurer to sell insurance cross border into other Member States. It does not apply to business accepted under full binding authorities held by coverholders in the Member State where the risk is located.
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See: freedom of services.

Clause in a fire policy on buildings in respect of the cover provided on items such as telephones, gas, water pipes and cabling which are partly outside the building. The cover is ‘accidental damage’ and applies to property belonging to the insured or that for which he is responsible.

A policy forming the subject of a trust.

An hours clause based on seven days. Some catastrophe occurrences may last for this period, expressed often as 168 consecutive hours rather than seven days.

Provision in a directors’ and officers’ liability policy that the wrongful act or knowledge of one director or officer is not to be imputed to another for the purpose of utmost good faith or application of a policy exclusion. Each insured person is treated as having arranged his own cover.
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A provision that insurance applies separately to each insured under the policy. Also, that facts relating to or knowledge possessed by one insured person will not be imputed to any other insured person either for purposes of applying the exclusions in the policy or invoking a coverage defense based upon misrepresentations in the application. As a result of this type of provision, the policy is treated as “severable” or a separate policy issued to each insured person and the conduct or knowledge of one insured person will not jeopardize coverage afforded to other insured persons. Typically, different severability provisions apply with respect to policy exclusions, on the one hand, and application representations, on the other. Absent severability provisions, the knowledge or conduct of one insured person may result in loss of coverage to all other insured persons, including “innocent” insured persons who had no involvement in or knowledge of the conduct that gave rise to the application misrepresentations or excluded conduct.