Market allowing EC insurers to set up establishment business, e.g. branches, in any other state without being subject to host state restrictions. Also an insurer authorised in its home state can engage in service business by selling freely across national frontiers. The EC has published three generations of Insurance Directives. The effect is to make EC insurers subject to home country control creating an authorisation known as the ‘Single European Licence’.

When two ships collide, the shipowner with the greater share of the blame pays the other the difference between their respective liabilities; according to maritime law there are not two liabilities. However, marine hull policies provide that claims shall be settled on the basis of cross liabilities.

Any agreement that extends across a single market, i.e. marine, aviation or non-marine, only. They may be joint agreements between Lloyd’s underwriters and insurance companies. Examples include leading underwriters’ clauses in all three markets, the ‘companies collective signing agreement’ (non-marine) and the Marine Waterborne Agreement.

EC term for single European licence.

An insurance under which a ‘one off’ premium secures cover for a long term, even in perpetuity as for a restrictive covenant indemnity.

Life company single premium contracts providing a lump sum investment with limited cover for medium- to long-term capital growth. They are a collective investment alternative to a unit trust. Special tax rules allow limited tax free withdrawals but capital growth is subject to higher rate income tax. The bonds may guarantee income or growth. Bonds may be categorised as: managed bonds; with profits bonds; equity bonds or income bonds.

A pensions method of determining the premiums payable under an insurance contract with the object of meeting within each year the cost of benefits relating to that year.

If two ships in the same ownership collide, the clause confers on the insured the same rights as if the two vessels were separately owned and separately insured. An appointed arbitrator apportions liability on that basis.