2. Interpretation
In these Regulations—
“Accounts” means the balance sheet, profit and loss account and the revenue account of a company;
“Act” means the Insurance Act;
“aviation insurance business” means the business of effecting and carrying out contracts of insurance—
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(a) upon aircraft or upon the machinery, fittings or equipment of aircraft;
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(b) upon the freight of, or any other interest in or relating to aircraft;
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(c) against loss, damage or liability arising out of or in connection with the use of aircraft;
“claims equalisation” means the amount set aside by a company at the end of its financial year to be used for the purpose of minimizing exceptional fluctuations in the amounts charged to revenue in subsequent financial years in respect of claims under insurance contracts;
“claims outstanding” means the amount set aside by a company at the end of its financial year for the purpose of meeting unsettled claims, including incurred but not reported claims under contracts of insurance, in respect of incidents occurring before the end of that year and for the purpose of meeting expenses likely to be incurred in connection with the settlement of such claims; but does not include the reduction of amounts recoverable from other insurers or other persons;
“gross premiums” mean premiums after deduction of refunds and rebates of premiums but before deduction of premiums for reinsurance ceded and commission payable by the company;
“marine insurance business” means the business of effecting and carrying out contracts of insurance—
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(a) upon vessels or upon machinery, tackle, furniture or equipment of vessels;
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(b) upon the freight of, or any other interest in or related to vessels;
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(c) against loss, damage or liability arising out of, or in connection with, the use of vessels;
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(d) against risks incidental to the construction, repair or docking of vessels including third party risks;
“reinsurance ceded” includes reinsurance retroceded;
“reinsurance recoveries” includes recoveries in connection with reinsurance retroceded;
“transport insurance business” means the business of effecting and carrying out contracts of insurance against loss of or damage to merchandise, baggage and all other goods in transit, (whether the transit is by sea, inland water, land or air or partly one and partly another) including risks incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance.
“unearned premium” means the amount set aside by a company at the end of its financial year out of premiums in respect of risks to be borne by the company after the end of its financial year under contracts of insurance entered into before the end of that year;
“unexpired risk” means the amount set aside by a company at the end of its financial year, in addition to unearned premiums, in respect of risks to be borne by the company after the end of its financial year under contracts of insurance entered into before the end of that year.