Like guaranteed asset protection – GAP – the policy pays out in the event of the vehicle being written off or stolen, but the benefit payable is the difference between the insurance company pay-out and the original invoice value. Cover is suitable for motorists who have wholly paid for their cars or paid large initial deposits. Policies run for two or three years as selected by the insured subject to a maximum benefit of £10,000.

Products liability policy extension to indemnify any independent vendor of the insured’s product. The indemnity does not apply where the third party injury/damage arises from certain activities, e.g. intentionally changing the physical or chemical make-up of the product, undertaken by the vendor.

Pensions term meaning: (a) benefits to which active members would be unconditionally entitled on leaving service; (b) the preserved pension benefits for deferred pensioners; (c) pensions entitlement of current pensioners; including, where appropriate, the related benefits for spouses or other dependants.

Bonus declared in respect of, and allotted to, with profits life policies. Once declared it is said to ‘vest’ and is added to the life insurance benefit and the existing bonuses. All vested bonuses become payable under the same conditions as the sum insured. With profits benefits once added are guaranteed.