Glossary of terms

For an explanation of the role of Adviser Administrator, please see here

Every scheme with Ellipse has what is called an 'automatic acceptance limit' (other insurance companies often refer to their equivalents as the 'free cover limit'). This is a monetary value, e.g. £500,000, that is applied on a scheme by scheme basis. All the scheme members' benefits up to this level will be provided automatically (there are some rare exceptions set out in our technical guides), without the need for the members to be assessed.

Members with benefits that exceed the automatic acceptance limit will still get cover up to the limit automatically – only the benefits in excess of the limit are subject to assessment. This means that even if the member is assessed for the excess benefits and special terms – a loading or exclusion – are applied, or cover is even declined, the member is still insured up to the value of the automatic acceptance limit.

The person responsible for uploading member data at the intervals agreed when policies are set up. We will ensure the data contact receives reminders of when data uploads are due.

In group life schemes, the benefits paid in the event of a member's death can either be in the form of lump sums, pensions or both. So, death in service pensions are pensions paid to the spouses, children or dependants of scheme members. Unlike lump sum benefits, which are usually tax-free, pension benefits are subject to income tax.

Discretionary entrants are members who join the scheme without fulfilling the eligibility conditions. Their full benefits will need to be assessed before cover can be confirmed – the automatic acceptance limit will not apply.

This is the part of our secure website where Ellipse holds all documentation and correspondence with advisers and clients. The information accessible to users is determined by their log-in details – nobody is able to see information that they shouldn't.

Every scheme has eligibility conditions which determine who is entitled to scheme membership. Generally, as soon as an individual meets the eligibility conditions, they are entitled to the benefits offered by the scheme and Ellipse will provide cover (actively at work conditions may also apply). Note, though, that cover for benefits above the scheme's automatic acceptance limit are covered subject to the results of an assessment by our underwriters.

Event limits apply to group life schemes and are limits placed on the value of claims payment that will be paid following a single catastrophic event, or a series of linked events.

HMRC allow two types of group life schemes, Registered and Excepted. Most schemes are Registered, Excepted ones being used for groups who cannot be covered by a registered scheme or who require more cover than is allowed under registered schemes.

A benefit paid if the member suffers one of a number of medical conditions.

A benefit paid on the death of a member. It can be in the form of a lump sum, pension or both.

Her Majesty's Revenue & Customs – what used to be known as the Inland Revenue.

These are individuals who are eligible to join their scheme but decide to do so after their first opportunity. Usually, this comes about where membership of a group life scheme is linked to membership of a pension scheme. Individuals have to be given the option to decline to join a pension scheme. If they do this, but later change their mind and therefore also need cover under their company's group life scheme, they are considered as late entrants and their benefits will need to be assessed before cover can be confirmed. We only regard individuals as late entrants if more than a year has elapsed between their first opportunity to do so and them joining the scheme.

Where members have benefits above the scheme's automatic acceptance limit, or they are joining without fulfilling the usual eligibility conditions, we will need to conduct an assessment of the member, looking at their health and lifestyle.

Refers to a type of member assessment whereby the member is assessed just once for the duration of their membership, rather than being reassessed as the value of their benefits increases.

For members with benefits subject to an assessment, we ask them to complete an online questionnaire about their health and pastimes. The questionnaire is confidential, with access to the answers provided restricted to our underwriters and any medical experts they consult.

Stands for Pension Scheme Tax Reference number and is allocated by HMRC to all new Registered group life schemes. Ellipse needs the PSTR to provide cover for a registered group life scheme.

HMRC allow two types of group life schemes, Registered and Excepted. Most schemes are Registered, Excepted ones being used for groups who cannot be covered by a Registered scheme or who require more cover than is allowed under Registered schemes.

Where providing cover for a member is subject to an assessment, we provide full cover, subject to a maximum of £5 million, for up to 30 days while the assessment is being done. Temporary cover ceases either after 30 days or once the assessment has been completed and the resulting terms of cover confirmed.

Stands for 'Terms of Business Agreement' and needs to be signed by advisers who want to have agencies with Ellipse.

A unit rate is an average cost applied across a scheme to all members, regardless of their age, sex, occupation or anything else. We don't use them because we prefer to charge the precise premium due for each member's cover.