Salvage - A recovery of all or part of the
value of an insured item on which a claim has been paid. The insurer will
normally dispose of the item and apply the proceeds to reduce the cost of the
claim.
Savings Policy - Plan where you make
regular payments to build up a lump sum.
Schedule - The part of a policy
containing information peculiar to that particular risk. The greater part of a
policy is likely to be identical for all risks within a class of business
covered by the same insurer.
Section 226 Policy - An ‘old style’
personal pension that was available only to the self-employed prior to the
introduction of Personal Pensions in 1988.
Segregated Funds - Assets which do not
belong to the insurer and which are excluded from the investment funds. The
assets are managed on behalf of the client and normally belong to the trustees
of a pension fund. SERPS - Part of an employee's National Insurance
contributions goes into SERPS (State Earnings-Related Pension Scheme), which is
paid on top of the Basic State Pension on retirement. The SERPS pension, payable
when you reach State pension age, depends on you earnings while you were in
employment and the National Insurance contributions paid. SERPS is paid in
addition to the Basic State Pension. This was replaced by the State Second
Pension in April 2002.
Services Business - Business written
under Freedom of Services.
Single Life Annuity - Annuity based on
the life of just one person.
Single Premium Policy - A Long-term
Insurance policy where the premium is paid in a single lump sum.
Solvency Margin - The excess determined
in accordance with the insurance supervisory rules of the insurer’s assets over
its liabilities. Under those rules, this is required to be not less than a
prescribed minimum.
Solvency Ratio - The ratio of the net
assets of a non-life insurer to its annual net written premiums.
Sponsored Individual Scheme - One where
each premium paid is identifiable to an individual employee and where, in
addition, the rules allow the employer discretion both as to whether the pension
arrangement was made for that employee and to the level of contribution or
target benefit under the policy.
Stakeholder pension - A type of personal
pension introduced by the Government in 2001 in order to make it easier for
people to save for their retirement. Stakeholder pensions are designed to be
simple, cheap and flexible.
Stand-alone Critical Illness - See
Critical Illness. These are policies where critical illness cover is the primary
element of the policy as opposed to being a Rider Benefit.
State Second Pension (S2P) - Extra state
pension that replaced SERPS in 2002. It is linked to your earnings while you
were employed, but only up to a limit that can change from time to time.
Statute Law - Presently the most
important source of law is statute law, otherwise known as Acts of Parliament,
which may create entirely new law, over-rule, modify, or extend existing
principles of common law and equity, and repeal or modify existing Statute law.
Subject to Survey - Phrase used by an
insurer to signify provisional acceptance of an insurance pending inspection by
a surveyor whose report is necessary to determine the rate and conditions
applicable.
Subrogation - The right of an insurer who
has indemnified a policyholder to take over any legal rights the policyholder
may have had in respect of that particular claim.
Subscriber - A person enrolled in a
scheme where a subscription is paid for himself/herself alone or including
dependants. For personal business it should relate to the policyholder, and for
corporate business, the subscriber is the member, ie the employee within a group
scheme.
Subsidence Claim - A claim arising from
subsidence, heave and landslip.
Sum Insured - The amount for which
property is insured, and the maximum amount that the insurance company will pay
for any claim. In life insurance, the amount that is guaranteed to be paid and
to which bonuses may be added.
Surety Bond - A guarantee to pay the
direct loss and damage suffered as a result of a breach of contractual
obligations.
Surrender Value - What you get back if
you cash in a life policy before it matures. Not all life policies have a
surrender value.
Syndicate - Group of underwriters at
Lloyd’s.
