Shared Flashcard Set

Details

Property and Casualty
Section 3C
21
Insurance
Professional
04/24/2013

Additional Insurance Flashcards

 


 

Cards

Term
personal umbrella policy
Definition
provides very high limits of liability and very broad coverage for a reasonable premium charge.
-written to provide excess liability coverage over and above a client's other personal liability policies.
Term
retention requirement
Definition
like a deductible and is often as high as $1,000.
Term
commercial umbrella policies
Definition
for businesses that need extremely high limits of liability insurance, these are available with limits up to $50,000,000 or more.
-written over and above a business' underlying CGL, auto liability, and employers liability covearges.
Term
excess policy
Definition
considered this, with the underlying policies acting like a deductible.
Term
professional liability
Definition
doctors and lawyers etc. need CGL to protect them for such things as premises laibility, the CGL does not cover their professional activities so they need this.
-protects the insured against legal liability resulting from negligence, errors and omissions, and the rendering or failure to render proper professional services. -does not cover fraud or dishonest or criminal acts.
Term
malpractice
Definition
sold to medical professionals, covers bodily injury liability
Term
errors and omissions E&O
Definition
sold to lawyers, agents and accountants. covers financial damages, but generally excludes BI and PD
Term
Directors and officers liability D&O
Definition
sold to board members/officers of corporations, covers errors and omissions and lawsuits brought by stockholders.
Term
fiduciary liability
Definition
a person holding the funds or property of another in a position of trust and who is obligated to act in a prudent and ethical manner. Failure to do so could result in a lawsuit filed by a person harmed by the _ improper management of client funds.
-attorneys, bank trustees, custodians and executors.
Term
Liquor liability
Definition
purchased by owners of taverns or night clubs that could be sued under the so called dram shop laws, which state that a person serving someone who is intoxicated or contributing to the intoxication of another person may be liable for injury or damage caused by the intoxicated person.
Term
Employment practices liability
Definition
of concern to employers who may be sued for unfair or discriminatory hiring practices.
-provides protection for an employer against claims made by employees, former employees, or potential employees.
-discrimination, wrongful termination, harrassment.
Term
aviation insurance
Definition
provides coverage for both liability and hull damage.
-liability coverage applies to claims arising out of the ownership, maintenance, or use of the insured aircraft
Term
surplus lines carriers, aviation pools
Definition
due to the possibility of large losses, major aviation risks are often insured by _ or _, which consist of a group of insurers who join together to share risks and premiums.
Term
surplus lines
Definition
specialize in coverages that are not available from authorized insurers.
-free from state regulation in the areas of policy forms and rates.
Term
surety bonds
Definition
another type of miscellaneous commercial lines coverage, provide a guarantee that specific obligations will be fulfilled.
-the bond is a three-party contract
Term
surety or guarantor
Definition
the insurance company that provides the bond in consideration for the premium paid.
1 of 3
Term
principal
Definition
the party who has agreed to perform the obligation, who purchases the bond at the request of the obligee or as required under the terms of a contract with the obligee
2 of 3
Term
obligee
Definition
the party whose benefit the bond is written. If principal defaults on the obligation, damages are payable by the surety or _.
3 of 3
Term
obligee, principal, surety
Definition
you the _ enter into an agreement that requires the contractor, the _, to purchase a contract bond from a surety, guaranteeing that the contractor will not default during the contract period. If the contractor does default, the insurance company the _ will pay you damages
Term
no claims
Definition
surety underwriters expect _ to be paid out
Term
indemnity agreement
Definition
states that in the event of default, the surety may place a lien against the personal assets of the principal
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