Catastrophe reinsurances at very high, even unlikely levels, that create an extra degree of security against events of unexpected severity.

A reinsurance premium under a non-proportional treaty based on burning cost for the period subject only to agreed minimum and maximum amounts. See ESCAPE CLAUSE.

A scale of commission payable under a treaty where the amount of the commission varies inversely with the loss ratio subject to a maximum and minimum.

a document used in the Lloyd’s market which sets out the details of the risk for which cover is sought and is presented by the broker to the underwriter, the latter signifies on the slip the extent of his/her intended participation in the risk and, in the case of the leading underwriter, the premium to be charged.

An addition to the slip, expressing the underwriter’s agreement to an issue agreed by the underwriter after his initial acceptance.
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An agreement expressed by an underwriter on a broker’s slip at a date subsequent to the original acceptance of the risk.

Best practice guidelines enabling brokers and underwriters to develop their own pro-formas to ensure the slip contains clear and complete information relating to the risk, its administration and procedures for agreement of claims and endorsements. They ensure clarity of contract terms and responsibilities.

Allows risks to be written electronically.

The insurer on the placing slip identified as leader. Under LMP 2001, the slip leader has responsibility for coordinating contract and claims management and administration.

A latent gradually progressive disease (e.g. asbestosis). The term accident is used as the ‘fortuity’ is in the outcome rather than the cause which is often exposure on a continuing basis to harmful work conditions. Pollution damage caused gradually over time by seepage is also regarded as a ‘slow accident’. See LOSSES-OCCURRING; TRIPLE TRIGGER THEORY; INJURY IN RESIDENCE.