Occurs when a pension scheme member exercises his legal right to call upon his previous pension scheme to make a transfer payment to a new scheme.

A fidelity guarantee insurance endorsement to extend the policy to cover loss from misappropriation or improper dealing with stockin-trade by the person guaranteed.

Individual ISAS that invest in stocks and shares. For this purpose, stocks and shares include: unit trusts; investment trusts; open ended investment companies; investments on any recognised Stock Exchange; corporate bonds; shares held in a savings-related share option scheme; and gilts.

Fire insurance term in respect of warehouse storage of property in bulk. The risk depends on the nature of the goods and any increase in risk due to the way they are stored. Even nonhazardous goods may be rated-up when stored in bulk.

Group of risks impacting on strategy and long-term plans of the organisation. The risk groups include: market and customer trends; economy/ policitical stability; competition; tactical decisions (investments, mergers, etc.); achieving predicted performance; major catastrophe/incident, including reputational risk; ethics, culture; corporate governance. They demonstrate the need for holistic risk management.

A performance bond that guarantees to a highway authority that a building developer will fulfil his obligation to construct roads on the estate or area of his development. The bond is usually 100 per cent of the construction costs involved.

A demand on physical or mental energy. It can cause a breakdown in a person’s physical or mental health. Employees, whose stress is caused by their employers’ breach of duty, may bring actions in the civil courts for damages or, if linked to dismissal, compensation may be awarded by an employment tribunal. The risks come under employers’ liability insurance and/or employment practices liability insurance. Employers need to include stress in their risk assessment and educate employees in stress management.

The Institute Strikes Clauses (Cargo) (1/1/82) cover loss or damage to cargo by: (a) strikers, lockedout workmen or persons taking part in labour disturbances, riots or civil commotions; and (b) any terrorist or any person acting from a political motive. Under the Institute War and Strikes Clauses (Hulls – Time) similar cover is included with the addition of damage by ‘any person acting maliciously. Shipowners face the prospect of cover being cancelled at short notice but voyages underway are permitted to complete their transit.

Arrangement between the claimant and the defendant’s liability insurer whereby the lump sum payment for future losses is replaced by periodic payments for a fixed period or until the claimant’s death. They may be index-linked, varied or ‘structured’ during the period. The insurer uses the ‘lump sum’ to buy an annuity that funds tax-free payments to the claimant. The court has no power to order such a settlement (Damages Act 1996, s.2).