A policy effected without insurable interest is a wager, but policy proof of interest policies (PPI) are used in practice. The Life Assurance Act 1774 enacts that all policies shall be null and void if the insured has no interest (see insurable interest) in the event insured against or if made by way of wagering or gambling.

Wages may be insured under business interruption insurance as an unspecified working expense or left uninsured as a specified working expense. Wages are also a key variable in employers’ liability and other adjustable policies. See and compare PAYROLL COVER; DUAL BASIS PAYROLL.

The uniformed staff of the Corporation of Lloyd’s, who perform general duties, wear red gowns and are known as ‘waiters’ reminiscent of the coffee house from which Lloyd’s originated.

1. The prescribed amount of time, e.g. 30 days, following the issue of the policy that must pass before the policy will respond to an insured event. Income protection policies eliminate any disability due to sickness that commences during the waiting period. Disability commencing subsequently will be covered under the policy’s normal terms that will generally include a deferred period. 2. The period of employment that must elapse before a new employee can join his company pension scheme or group life scheme.
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A period of time set forth in a policy which must pass before some or all coverages begin.
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Specified period of time which must elapse after inception of Policy before benefits provided by certain Insurance policies become payable.
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The duration of time between the beginning of an insured person’s disability and the start of the policy’s benefits. Also called elimination period.

Marine insurance clause that entitles both the insurer and the insured to take measures to rent or reduce loss without prejudice to their respective rights. They do not by their actions take up a fixed position on abandonment or a constructive total loss.

Health/life policy option whereby the insurer waives premiums when the insured is incapacitated through sickness or disability. Similar provisions are available in personal pension schemes when the provider agrees to credit ongoing premiums for the benefit of the scheme member.
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A provision that under certain conditions the Insurance Policy will be kept in full force by the Insurance Company without the payment of premium. It is used quite often as a total and permanent disability benefit and may be available in certain other cases.
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A provision included in some policies which exempts the insured person from paying premiums under loss-of-income policies while the insured is collecting loss-of-income benefits or during a period of total disability, and under some hospital and surgical expense policies while the insured (or spouse) is totally disabled.

‘Armed conflict of states in which each seeks to impose its will upon the other by force. It is not a blind struggle between mobs of individuals without guidance or coherence, but a conflict of organised masses moving with a view to cooperation, acting under the impulse of a single will and directed against a definite objective.’ (F.H. Jones).

Non-marine insurance companies and Lloyd’s underwriters agreed not to cover the consequences of war risks on land. Consequently the government provides cover in times of war. A standard exclusion of war (and civil war) appears in non-marine policies other than life. War risks cover is available in the marine and aviation markets. See WAR RISKS INSURANCE; WATERBORNE AGREEMENT.
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An agreement between Lloyd’s underwriters and non-marine insurance companies that they will not cover certain war and civil war risks on land.

Cover on ships or cargo against war risks, derelict mines, torpedoes, bombs etc.. Cover is under the Institute War Clauses (Cargo) and the Institute War and Strikes Clauses (Hulls-Time). Cargo is covered under a voyage policy only while on board the oversea vessel except for restricted cover while in craft. War risks and strikes cover for hulls is on a time policy but cover terminates automatically if there is war between the major powers, or the vessel is requisitioned, otherwise it can be terminated at seven days’ notice. Open covers and floating policies are also subject to seven days’ cancellation. The waterborne agreement brings marine insurance into line with non-marine insurance (i.e. excludes war risks on land-based property). See WAR AND CIVIL WAR EXCLUSION AGREEMENT; WAR RISKS.

War, hijacking and similar risks are underwritten in a specialist market and in the marine and aviation market. Cover for war risk liabilities is underwritten in the aviation market only.