"Three years' average" system

A system of basing profit commission on reinsurance treaties on the profits averaged over three years.


A tabulation / A compact scheme of numerical information. / In industrial life assurance a list of premium rates for a policy of a particular type.

Table of decrements

A table, prepared on given assumptions, showing the expected numbers out of a group of lives who will leave the group for various reasons (death, lapse, surrender).

Table of definitive numbers

A schedule of underwriters showing their participation in a Lloyd's policy.

Table of limits

A guide for an underwriter showing the maximum sums that an insurance company is prepared to insure on various classes of property.

Tacit renewal clause

A clause in a long term contract of insurance whereby annual renewal is automatic unless the insurer gives notice of specified length that he will not renew.


Damage to cargo through stowage in close proximity to other cargo which affects it adversely.

Take down

Making an entry for accounting purposes in relation to a premium or claim.

Take note

A document prepared by a reinsurer to signify acceptance of a facultative reinsurance that has been offered in a request note (q.v.).


The weight of a container.

Target risk

A large, hazardous insurance / A large insurance eagerly sought by brokers or insurers.

Tariff company

An insurance company that is a member of an association which prescribes minimum premium rates.

Tariff rate

The minimum rate of premium prescribed by a trade association for an insurance of a particular class.

Tax clause

A clause in an insurance policy which provides that in the event of a return of premium becoming due any tax allowed for by the insurer on the original premium shall be deducted from the return.

Tax paid clause

A clause in an insurance policy providing that the insurer will allow a deduction from the premium in respect of tax paid by the insured by reason of effecting the insurance.

Technical profit

Profit on underwriting calculated without allowance for interest on the insurer's funds.

Technical reserves

The reserves that an insurer must hold to enable him to discharge his eventual liabilities on the insurances he has issued.

Television insurance

Insurance of all-risks type on television sets.


A severe storm (q.v.).

Temporary disablement

Inability to follow one's occupation in whole or in part for a limited period, for which benefits may be payable under a personal accident insurance.

Temporary importation bond

A bond to secure the payment of duty on goods that have been temporarily imported if for any reason they are not exported again.

Temporary life annuity

An annuity under which the insurer's payments cease on the death of the annuitant or at a specified date, whichever is the sooner.

Temporary life assurance

Life assurance issued for a short period or for a term of years at the end of which the assurer is not bound to renew.

Temporary removal clause

A clause in a property insurance policy covering property when temporarily removed from the location specified in the policy. This extension of cover, subject to various limitations, is found especially in household policies on contents.

Tenant's liability

A tenant's liability as a private householder in respect of accidental injury to or damage to the property of a third party may be covered by a household policy / A business tenant's liability for damage to rented property is usually governed by an agreement with the landlord. A public liability policy may be extended to cover the tenant's liability to the landlord for damage to the property by negligence.

Tender bond

Same as Bid bond.

Tender Clause

A clause in a marine hull policy which provides for immediate notification of accident and gives the insurers various rights in connection with repairs, including one to take tenders for repairs.

Ten-to-one policy

A form of group pensions policy, formerly popular, which provided deferred annuities and a death-in-service benefit of ten times the value of a deceased's expected pension.


A period of insurance / The time for which anything lasts / A word used in an understood or defined sense. / A condition or stipulation in an contract.

Term assurance

Same as Temporary life assurance.

Term policy

A temporary life assurance (q.v.,) policy / A non-life policy written for more than a year.


A fixed period.

Terminal bonus

A bonus on a with-profits life assurance policy added to other bonuses when the sum assured becomes payable.

Terminal funding

A system whereby in a pension fund reserves are created in respect of an employee only when the employee attains retirement age.

Termination of adventure

Under a marine time policy, the time when the insurance expires. Under a marine voyage policy the time the vessel arrives at destination. Under a marine cargo policy, the time when the insurer's liability ceases because the goods have arrived at their destination or the cover is cut short by the terms of the policy.

Termination of Adventure clause

A clause in a cargo policy which continues the cover where the adventure is terminated short of destination in circumstances beyond the insured's control.

Terms of credit

The periods prescribed in an agreement with agents or brokers for the payment of their account.

Territorial limits

The geographical limits within which an insurance is stated to operate.


The use of violence for political ends, including any use of violence for the purpose of putting the public in fear.


The dishonest appropriation of the property of another with the intention of permanently depriving the other of it.

Theft Act 1968

An Act that revised the law relating to theft and associated offences.

Theft insurance

Insurance of property against theft (q.v.). The insurance is often limited to theft accompanied by forcible entry to premises.


By the Marine Insurance Act 1906 (rule 9 of Rules for Construction of Policy) the term "thieves" does not cover clandestine theft, or a theft committed by any one of the ship's company, whether crew or passengers. Pilferage must be expressly covered if cover is required.

Third Parties (Rights against Insurers) Act 1930

Where a third party is entitled to damages from a person who becomes insolvent and who is insured in respect of his liability to the third party, the Act transfers that person's right of indemnity from his insurer to the third party.

Third party

A person who is not a party to a contract such as a contract of insurance, As used in aviation insurance the term does not include passengers in the insured's own aircraft / In a legal action, a person not originally sued by the plaintiff but brought into the action by a defendant.

Third party insurance

Insurance of one's liability to another. In aviation insurance third party insurance is differentiated from insurance of liability to passengers in the insured's own aircraft.

Third party liability

Liability of the insured to persons who are not parties to the contract of insurance.

Third party only policy

In motor insurance a policy with cover limited to the insured's liability for injury to, or damage to the property of, third parties.

Third-party sharing agreements

Agreements between liability insurers that when their respective policyholders are involved in an occurrence giving rise to a third-party claim, any settlement will be shared between the insurers without apportionment of blameworthiness.


See New for old (2).

Three-year accounting

A system of insurance accounting under which profits (or losses) for a given year are not determined until the end of three years.


Same as Franchise (1).

Ticket policy

An insurance issued by way of ticket or coupon giving personal accident benefits for a short duration or during a journey.

Time and distance insurance

A contract designed to spread the cost of established liabilities on the part of one party who makes a payment or series of payments to the other party, called the insurer. The insurer agrees to settle the claims as and when they fall due. See also financial reinsurance.

Time excess

A period immediately following an insured event in respect of which period the insured must bear his own loss.

Time on risk

A period during which insurance has applied used for the calculation of premium when for some reason the insurance has been discontinued.

Time policy

A marine insurance policy covering a period of time as distinct from a voyage


The rights of ownership of property such as an insurance policy or other legal interest in it.

Title insurance

Insurance in respect of loss arising from a defect in title to real property.

To pay as cargo

A provision in a marine policy effected to supplement a cargo policy, as where a buyer wishes to cover himself for a higher value than that fixed in the seller's policy. When issuing the supplementary policy the insurers agree that where a loss is shown to be recoverable under the original policy they will not contest the higher value.

Tonner policy

An insurance or reinsurance payable if sinkings in a period exceed a tonnage agreed in advance, without regard to whether the insured suffered financially by the sinkings / An aviation reinsurance under which the reinsurer undertakes to pay a fixed amount if an air crash results in a specified number of deaths.


A system whereby a number of persons contribute to a fund which at the end of a specified period is divided up among the survivors by way of payment of capital or an annuity.

Top Hat scheme

A discretionary pension scheme usually provided by means of endowment assurance for high earners.


Where a payment under a life assurance contract results in a gain, for income tax purposes, to the policyholder, the whole gain is taxable but only at the rate that would apply to the total gain divided by the number of years the contract has been in force.


A violently rotating funnel cloud of small diameter. A violent squall blowing out of thunderstorms and dust storms.


A civil wrong.


One who is responsible for a civil wrong.

Total disablement

Disablement which wholly prevents a person from performing his usual occupation.

Total loss

A loss of the subject matter of insurance such that it is totally lost, destroyed or damaged beyond economic repair / A loss that gives rise to payment of the full sum insured.

Total loss of part

A marine cargo policy may provide that a loss of a whole package in loading or discharge or the loss of a whole craft load shall be treated as a total loss of that part of the cargo and hence will not be subject to a franchise.

Total loss of vessel only

A marine insurance policy on disbursements and the like may provide that the insurers shall pay only if the vessel is a total loss.

Total loss only

A term used in marine hull insurance and reinsurance limiting cover to payment for a total loss. A clause is likely to define whether the cover is to include arranged or compromised total losses and whether sue and labour charges and salvage charges are recoverable.

Total loss only reinsurance clause

See Total loss only.

Touch and stay

An expression in a marine insurance policy which permits a vessel to call or stay at any unspecified customary ports on the vessel's route (without deviation).

Tourist floater

A policy covering the baggage and personal effects of travellers (U.S.).


Tanker Owners' Voluntary Agreement Concerning Liability for Oil Pollution / An agreement by most tanker owners that, subject to a limit of liability, they will remove persistent oil discharged by their tanker and will reimburse any government for expense in cleaning up oil pollution resulting from the tanker owner's negligence.

Tow and Assist Clause

A clause in a marine insurance hull policy under which the insured warrants that the ship shall not be towed except where towing is customary or the ship is in need of assistance and that the ship shall not undertake towage or salvage services under a previously arranged contract.


A process whereby an insurer follows the rates of other insurers (U.S.).

Trade losses

The losses recognised by a trade as those to which a commodity is naturally subject during the ordinary course of transit.

Trade mark

A distinctive mark or device on or accompanying an article intended for sale to indicate by whom it is made, selected or sold.

Trade risk

A risk inherent in a trade, such as occasional breakages in a china shop, which insurers do not normally cover.

Trading warranties

A set of warranties in a marine hull policy dealing mainly with prohibition of a vessel entering specified hazardous areas.

Trailer caravan insurance

Insurance of the structure and contents of trailer caravans whether in transit or on a site.


Endorsement of a policy to substitute a different insured.

Transfer club

Where a pension scheme has agreed with one or more other schemes that members transferring from one to another will receive favourable terms, it is said to belong to a transfer club.

Transfer of portfolio

The substitution of a new insurer for the original one in respect of all insurance business of a particular class.

Transfer pension scheme

A scheme whereby a person leaving a pension schedule uses the transfer value (q.v.) to buy a pensions policy.

Transfer risk

The risk of loss in an international transaction when a payment due is delayed, restricted or prevented by law of decree in either of the countries concerned / In credit insurance the risk that a debtor though able and willing to pay is unable to transfer the money.

Transfer value

The estimated value of a person's rights under a pension scheme on transfer out of the fund.


Where the rules of a pension scheme so allow, a sum of money to the credit of a member who leaves the fund may be paid over to another fund of which he is becoming a member.

Transit clause

A clause in marine and aviation cargo policies providing that the cover attaches from the departure from the place of storage at a place named in the policy until the cargo arrives at a place of storage at a named destination or at some alternative place.


A risk proposed for insurance is said to be transparent when full information about it is available.

Transshipment bond

A customs bond in respect of goods to be transferred from one ship to another.

Trapping risks

The risks of a ship or cargo being trapped by war or similar perils.

Treasury stock

A British Government security / Shares in a company that are owned by the company itself (U.S.).


A contract providing for a number of reinsurances over a period.

Treaty balance

The sum due from a reinsurer to an original insurer, or vice versa, under an account of premium and claims payments relating to a reinsurance treaty.

Treaty reinsurance

Reinsurance under contracts (treaties) relating to specified classes of policies.


In business interruption insurance the policy provides that adjustments are to be made in calculating the rate of gross profit and the turnover to allow for the trend of the business.


Depreciation or allowance for wear and tear.


A table listing premiums earned in each of several underwriting years showing claims paid year by year expressed as a percentage of premiums. The percentages form a triangle.


A financial vetting by an association of Lloyd's underwriters of someone to whom a Lloyd's syndicate contemplates issuing a binding authority.

Triennial valuation

Life assurance companies are required to provide a periodical actuarial valuation of their funds. The Companies Act 1967, s.19, reduced the maximum period between valuations from five years to three.

Trivial pension

A very small pension that the Inland Revenue will permit to be commuted for a lump sum.

True premium

A life assurance premium for a period of less than a year which is not an instalment of the annual premium and is not therefore payable if it does not fall due until after the death of the life assured, in contrast to an instalment of an annual premium.


A device of English law whereby the legal ownership of property is vested in persons known as trustees who hold it for the benefit of another (the cestui que trust).

Trust corporation

Defined by the Trustee Act 1925, s.68, as the Public Trustee, the Treasury Solicitor, the Official Solicitor, other officials prescribed by the Lord Chancellor, or a corporation either appointed by the court in any particular case to be a trustee, or entitled by rules made under the Public Trustee Act 1906, s.4(3), to act as custodian trustee.

Trust deed

A formal document creating a trust, stating its objects, naming trustees and defining their powers and duties.


A person in whom the legal ownership of property is vested for the benefit of another (the cestui que trust).

Trustee security

A security in which trustees are empowered to invest trust funds with no restriction, unless the trust deed otherwise directs.

Trustees in general average

Two persons appointed by the shipowner and the cargo owners respectively to be trustees of a general average fund.


A swift sea wave of great height resulting from an earthquake.


The trading receipts of a business.

Twenty-four hours clause

A clause attached to a marine cargo policy, usually on refrigerated goods, where delay is an insured peril, including the risk of breakdown of machinery. The clause makes claims payable only where the breakdown lasts for 24 hours or more.


Inducing a life assurance policyholder to lapse or cancel a policy in order to replace the policy with another to the detriment of the policyholder.

Two conditions of average

A provision found in floating fire insurances on merchandise in warehouses and the like. The insurance is made subject to average (q.v.) and in addition it is provided that if the property insured is the subject of a more specific insurance, that insurance shall be applied first, with the policy bearing the two conditions of average applying only to the uninsured balance.

Two plane warranty

A provision in an aviation excess of loss reinsurance which relieves the reinsurer of liability unless two or more aircraft are involved in the same loss occurrence.

Two rig warranty

A provision in a marine excess of loss reinsurance which relieves the reinsurer of liability unless two or more rigs are involved in the same loss occurrence.

Two risks warranty

A provision in a property reinsurance catastrophe treaty that the reinsurer will be liable only in respect of claims where at least two risks are involved in one event.

Two vessel warranty

A provision in a marine hull excess of loss reinsurance which relieves the reinsurer of liability unless two or more vessels are involved in the same loss occurrence.


A violent cyclonic wind in the North West Pacific and the China Seas; a hurricane.