Large Risks

An official term used in EEA insurance regulation. The formal definition of “Large Risks” is found in the EU’s 2ndNon-Life Insurance Directive (88/357). It can be summarised as meaning:
(i) Risks classified as:
Railway rolling stock
Aircraft (including aircraft liability)
Ships (sea, lake and river and canal vessels) (including liability)
Goods in transit (including merchandise, baggage, and all other goods).
(ii) Risks classified as Credit or Surety where the policyholder is engaged professionally in an industrial or commercial activity or in one of the liberal professions, and the risks relate to such activity.
(iii) Risks classified as:
Fire and natural forces
Other damage to property
General liability
Miscellaneous financial loss
in so far as the policyholder exceeds the limits of at least two of the following three criteria:
- balance-sheet total: 6.2 million euros,
- net turnover: 12.8 million Euros,
- average number of employees during the financial year: 250.
If the policyholder belongs to a group of undertakings for which consolidated accounts are drawn up, the criteria mentioned above is applied to the consolidated accounts.

Leading underwriter

The underwriter of a syndicate or insurance company who is responsible for setting the terms of an insurance or reinsurance contract that is subscribed by more than one syndicate or insurance company and who generally has primary responsibility for handling any claims arising under such a contract.
Where an insurance or reinsurance contract that is underwritten by more than one syndicate Xchanging Claims Services normally acts as the representative of the following underwriters as regards the agreement of claims under the contract. In certain situations a managing agent of a following syndicate will be appointed together with Xchanging Claims Services to represent the following underwriters. However some matters require to be referred to all the following underwriters on risk and an insured may always insist that its claim is shown to each following underwriter.

Leading underwriter's agreement

An agreement that allows for certain changes to the terms of an insurance or reinsurance contract to be agreed by the leading underwriter(s) without reference to the following underwriters.

Liability insurance

An insurance which covers the insured against third party claims or, in the case of employer’s liability insurance ,claims by employees, subject to specified terms and conditions.

Life assurance

Another term for life insurance.

Life assured

The person whose life is insured under a life insurance.

Life insurance

A policy that pays a specified sum to beneficiaries upon the death of the life assured, or upon the assured surviving a given number of years, depending on the terms of the policy. Life insurance policies may be for fixed or indefinite term. See term life as regards fixed term policies.