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Annual Management Charge
This is an annual charge which can be incurred on a life policy/pension by the insurer. It is generally set out in the information given to you at the outset and also in your annual statement.
A broker can help you to search the market to find the insurance or investment/pension policy that is most suitable for you. The broker is also known as an independent financial adviser or financial adviser.
Annual Premium Equivalent
An industry standard formula for calculating levels of life and pensions new business over a period of time, to smooth out the effect of large, one off payments. It is the total of new annual premiums plus 10% of single premiums.
Approved repairer
A repairer that an insurer includes within a scheme to guarantee workmanship, labour rates and discounts on parts, and to reserve the right to reduce a policyholder’s claim payment if they do not use the approved repairer
Average
An insurance principle that if a sum insured is less than the full insured value, the insured should be their own insurer for that proportion and share the losses accordingly.