Insurance jargon explained
AXA
Draft Order laid before Parliament under section 15(8) of the Enterprise and Regulatory Reform Act 2013, for approval by resolution of each House of Parliament.
Draft Statutory Instruments
Terms And Conditions Of Employment
A draft of this Order was laid before Parliament in accordance with section 15(8) of the Enterprise and Regulatory Reform Act 2013( 1) and approved by a resolution of each House of Parliament.
The Secretary of State, in exercise of the powers conferred by section 15 of the Enterprise and Regulatory Reform Act 2013, makes the following Order:
Citation and commencement
1. This Order may be cited as the Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013 and comes into force on the day after the date on which it is made.
Limit of compensatory award for unfair dismissal claim
2.-(1) Section 124 of the Employment Rights Act 1996( 2) is amended as follows.
(2) In subsection (1) for "£74,200" substitute "the amount specified in subsection (1ZA)".
(3) After subsection (1) insert-
The amount specified in this subsection is the lower of-
Consequential amendment
3. In section 226(3) of the Employment Rights Act 1996( 4) for "or 121" substitute ", 121 or 124".
Transitional provision
4.-(1) Articles 2 and 3 do not have effect in any case where the effective date of termination is on or before the date on which this Order is made.
(2) In this article "effective date of termination" has the meaning given by section 97 of the Employment Rights Act 1996( 5).
Name
Parliamentary Under Secretary of State for Employment Relations and Consumer Affairs
Department for Business, Innovation and Skills
Date
EXPLANATORY NOTE
This Order amends the limit on the compensatory award for unfair dismissal claims by introducing an additional, alternative limit. In an unfair dismissal claim the limit on the compensatory award shall be the lower of a set amount (which is currently £74,200) and the product of 52 multiplied by a week's pay of the employee concerned.
The transitional provision contained in this Order means that the additional, alternative limit for the compensatory award (of 52 weeks pay) will not apply in cases where the effective date of termination is on or before the date the Order is made.
A full regulatory impact assessment is available and a copy can be obtained from the Department for Business, Innovation and Skills, Labour Market Directorate, 1 Victoria Street, London, SW1H 0ET. Copies have also been placed in the libraries of both Houses of Parliament.
DEFINITION of 'Annual Percentage Rate - APR'
The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.
INVESTOPEDIA EXPLAINS 'Annual Percentage Rate - APR'
Loans or credit agreements can vary in terms of interest-rate structure, transaction fees, late penalties and other factors. A standardized computation such as the APR provides borrowers with a bottom-line number they can easily compare to rates charged by other potential lenders.
By law, credit card companies and loan issuers must show customers the APR to facilitate a clear understanding of the actual rates applicable to their agreements. Credit card companies are allowed to advertise interest rates on a monthly basis (e.g. 2% per month), but are also required to clearly state the APR to customers before any agreement is signed. For example, a credit card company might charge 1% a month, but the APR is 1% x 12 months = 12%. This differs from annual percentage yield, which also takes compound interest into account.
DEFINITION of 'Annual Premium Equivalent - APE'
A common sales measure technique used by insurance companies in the United Kingdom where the sales of a given entity are estimated by taking the value of regular premiums, plus 10% of any new single premiums written for the fiscal year. The premiums earned by a firm can be extended to include all revenues of a given firm.
INVESTOPEDIA EXPLAINS 'Annual Premium Equivalent - APE'
When estimating any future metric, it is important to consider any unforeseen events, and how these events may impact your estimate. For example, when forecasting a firm's sales revenues, you would want to consider the competition and what there product lines and pricing strategy will be over the forecasting period.
This will allow you to fine-tune your estimate, which will hopefully be more applicable, and provide you with a margin of safety.
Acute condition
Definition
A disease, illness or injury that is likely to respond quickly to treatment which aims to return you to the state of health you were in immediately before suffering the disease, illness or injury or which leads to your full recovery.
This is a defined term that's agreed by the Association of British Insurers, and commonly used by insurers that provide private medical insurance.
Explanation
Used when talking about types of medical condition.
Acute has a specific meaning in medical insurance. This reflects the way the term is used in medicine rather than the way it's used in general use where acute tends simply to mean an illness that's 'currently very bad'.
A medical condition that's acute can become chronic.
All Risks
Definition
Wider cover than given under a standard property insurance policy.
Explanation
Used when talking about types of insurance cover.
Standard property insurance is based on defined causes of damage.
All risk covers any loss or damage apart from exclusions as stated in the policy.
Annual Premium
Definition
The premium due for one year's cover.
Explanation
Used when talking about insurance premiums.
Associate of the Chartered Insurance Institute (ACII)
Definition
A professional insurance qualification awarded by the Chartered Insurance Institute.
An Associate of the Chartered Insurance Institute has successfully completed the Advanced Diploma in Insurance, previously known as the Associateship.
Explanation
Used when talking about professional qualifications in the insurance industry.
Associate of the Chartered Insurance Institute is a widely recognised qualification in the UK insurance industry.
The Advanced Diploma in Insurance is the second highest of four available levels of qualifications offered by the Institute. It was previously called the Associateship.
Benefit allowance
Definition
The maximum limit that could be paid for all eligible claims for a particular type of benefit in a policy year.
Explanation
Used when talking about insurance policy benefits.
A benefit could be a payment or a service. The benefit allowance (this is also referred to as 'limit') for each benefit sets the limit for the particular type of benefit in a specified period.
For example, Jason has a medical insurance policy that provides psychiatric treatment as a benefit. The benefit has a benefit limit of £500 per policy year. This means that the most Jason could claim for psychiatric treatment in a policy year would be £500.
Benefit limits can have different amounts, and they can run over different periods.