Minimum premium rates drawn up by a trade association for a particular class of business.
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A general term for any obligatory listing of rates, terms conditions and exclusions etc for any particular or all classes of insurance business. An obligatory and binding schedule of premium rates, terms and conditions created and published by the Tariff Advisory Committee or Regulator.

Low tax areas offshore, particularly attractive to captives. Bermuda tops the list followed by the Cayman Islands, Guernsey, Gibraltar and the Isle of Man. Taxes on profits are deferred until they are repatriated. Formation is more straightforward and, given that captives will have one main or only customer, this is appropriate as the procedures in the developed countries are stringent as their aim is to protect the general public.

Impairment of an insurance company’s assets to the point where it no longer maintains the required margin of solvency but which would not make a non-insurance company insolvent.

the provisions and reserves shown in the regulatory return in respect of general insurance; the term is also used of the equivalent accounts provisions/reserves.

Funds available to the insurer to meet future claims on insurance that has been underwritten. In the UK the reserves must include: the unexpired premium reserve; the unexpired risk reserve; outstanding claims reserve; reserve for claims incurred but not yet reported (IBNR). Common prudence might call for additional reserves, e.g catastrophe reserve.
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The accounting entries in the balance sheet which represent the insurer’s liabilities from the business which has been written. For example, UPR, URR, outstanding claims reserve, equalization reserve, etc. Also, See Also: “Policyholders funds.”

Rule of construction meaning that where technical or legal words are used in a policy they are to be given their strict technical legal meaning unless the policy shows a different intention. Example: Four armed men stole cash from the insured. There was no other disturbance in the area, but technically there had been a ‘riot’ the definition of which (at that time) required only that there should be three persons with a common purpose threatening violence. The exclusion of ‘riot’ applied.

Risk related to the rapid development of new technologies. Certain changes may have a significant impact on health and therefore employers’ liability claims, e.g. repetitive strain injury, from inceased use of visual display units. Technological changes have also impacted on the effectiveness of distribution channels leading to more insurance, especially personal lines, being sold and serviced electronically. This could adversely affect insurers and intermediaries more reliant on traditional methods.

Relates to failure of technology, e.g. systems failure, poor data quality, software problems, etc.

Absence from work through illness or employer-approved temporary leave of an active member of an occupational pension scheme. During the absence retirement benefits continue to accrue and the member remains covered by the death in service benefit for a maximum of 30 months for illness-related absence and 12 months for other employer-approved reasons. Females taking maternity leave are treated as having been in continuous service.

An annuity under which the payments to the annuitant will cease at the end of a given period or at death whichever shall occur the first.