Certain legally imposed ‘health and safety duties’ have to be ca ried out in this way. It means that a particular risk can be balanced against the time, trouble, cost and physical difficulty of taking measures to avoid the risk. If the cost and effort are disproportionate to the risk, the parties can run the risk without taking the alternative steps. The greater the risk, the greater must be the effort before it is considered disproportionate. If both the consequences and extent of risk are small, insistence on great expense would not be reasonable. Compare with all practicable steps’ meaning ‘capable of accomplishment regardless of cost but dependent on state of knowledge at time.’ See PROPERLY MAINTAINED.

A class of use in private car insurance.

Occupational pension scheme trustees are required to include a statement in the Statement of Investment Principles on the extent to which social, environmental or ethical considerations are taken into account in the selection, retention and realisation of investments.

Required minimum margin (RMM) for the Society of Lloyd’s. It must maintain the RMM it would have been obliged to maintain under IPRU(INS) (Margins of solvency) had it been an insurer carrying on all the general insurance business carried on by its members, but eliminating inter-syndicate reinsurance (the Society guarantee fund). The Society must cover any shortfall out of its net central assets.

Created by the Chartered Insurance Institute to encourage continuing study by Fellows of the Chartered Insurance Institute. Its wideranging objectives include stimulating research and contributing to the enhancement of the CII as a professional body.

Part of the Chartered Insurance Institute, it is the UK’s leading professional and educational body for financial advisers. SOFA has the largest number of members qualified to an advanced level in financial planning. It encourages professional development through qualifications, conferences, seminars, etc. There are four levels of SOFA designation. The entry level qualification is the Financial Planning Certificate. The penultimate level is the Associateship – ASFA necessitating six Advanced Planning Certificate subjects, three of which give access to professional membership, MSFA. The highest level is Fellowship FSFA after four additional subjects, making ten in total and is subject to five years’ relevant experience. (Visit www.sofa.org). –

UK: A market in which there is a ready supply of insurance. Competition among insurers drives premium rates down and terms and conditions ease as insureds find themselves able to negotiate better terms.
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A term given to a condition in which insurance is relatively inexpensive and easy to obtain. Underwriting is looser and rates are competitive.
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US: One side of the market cycle that is characterized by low rates, high limits, flexible contracts, and high availability of coverage.
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When the availability of some or all classes of insurance or reinsurances is high relative to demand for such insurance or reinsurance. Competition amongst insurers and reinsurers leads to downward pressure on premiums and to the availability of more extensive coverage terms. Compare hard market.

IR rule that the sole purpose of any pension scheme is to provide a pension for its members. Those responsible for the scheme must take account of the rule in managing the scheme. Breaches that disadvantage members or connected persons attract serious penalties.

Phrase that qualifies the term ‘accidental bodily injury’ in personal accident insurances. The phrase excludes injury or disablement where a pre-existing condition has contributed to the onset of the disablement or prolonged its duration. A gall stone sufferer died when accidentally struck. Independently of each other neither the medical condition or the blow would have killed him.