2. Risks written in the London Market Flashcards
examine and explain the main classes of business written in the London Market; describe the losses and liabilities which may give rise to claims under each of the main classes; and describe how underwriters diversify their risks and manage their portfolios.
What is agricultural crop and forestry/hail insurance?
Covering the risk of anything being farmed as a crop, e.g. wheat, tobacco, fruit trees, against peril, e.g. hail, or frost
What is bloodstock insurance?
Bloodstock specifically covers racehorses and show-jumpers. Perils covered include sickness, injury, total loss or loss of value (fail to breed).
What is livestock insurance?
Livestock covers all animals (and fish) that are reared commercially. Peril covers sickness, injury, disease and loss.
What is contingency insurance?
This is a sub-category of insurance which typically covers entertainment or sports events. Examples include:
* Concert or event cancellation/abandonment
* Over-redemption insurance
* Prize indemnity
What is concert or event cancellation/abandonment contingency insurance?
This insurance provides cover for the costs of redunfd tickets, rearranging the event (if possible) and recouping some of the costs if an event or concert is cancelled. Cancellation could be because the artist is sick or the venue has collapsed, etc.
What is over-redemption contingency insurance?
Cover for if there is a more redemption than expected on things like coupons from cereal packets, or free gifts with purchases. If the value of the extra is outweighted by the profits of sale, you can claim the loss.
What is prize indemnity contingency insurance?
Insurance to cover a competition or event that statistically is unlikely to be achieved, in which a large prize can be won. E.g. a ‘hole-in-one’ wins a new car.
What is personal accident and health insurance?
Insurance which covers against accidental ininjury and sickness, and in some cases death. It is a ‘benefit’ policy, where set sums are paid against certain injuries, long-term care claims and disablement.
What does kidnap and random insurance cover?
The main coverage is for the payment to the kidnappers, however it may also cover medical and phychological treatment, and a persons salary whilst they’ve been help captive.
What is contractors all risks (CAR) insurance?
This insurance covers construction and all contractors on a large project, the head contractor will typically take our this insurance. This covers:
* loss or damage to building works;
* machinery movement
* business interruption
* public liability and employers liability
* damage to the plant (machinery)
What is erection all risks (EAR) insurance?
For cranes or erected steelwork, this cover is for loss or damage to owned equipmentas well as liability cover. This insurance cover can be absorbed by CAR insurance but if often purchased seperately.
What three constituent parts can property insurance be divided into?
- Buildings - chemical plants, shops, offices
- Machinery - computers, industrial machinery, fixtures
- Stock - materials, raw materials, finished products
What are the typical heads of ‘all risks’ property insurance?
- Fire (including underground fire)
- Lightning
- Explosion
- Earthquake
- Aircraft
- Riots/Strikes
- Malicious acts
- Storm, flood or escape of water
- Impact damage
- Sprinkler leakage
- Subsidence
Under the Public Order Act 1986, what is needed to be considered a ‘riot’?
12 people rioting
1 person who fears their own safety
In property insurance, the exclusions can be grouped into three main categories, what are these?
- Those risks that an insurance company would never consider
- Risks that may be covered after consideration
- Those risks insurers usually provide as ‘buy-backs’
