3 - Main Classes of Business Written in the London Market Flashcards
If a ship is damaged and will be out of use for months, what insurance policy can they claim against?
Loss of earning insurance.
What does loss of earnings insurance use instead of excesses/deductibles?
Waiting periods, ie. financial loss over time.
what insurance covers both transit and storage?
Stock throughput insurance.
If a vessel damages a marina when docking, which marine policy should respond?
Liability.
What are the three phases of cover in offshore energy insurance?
Exploration
Construction
Operation
If you know in advance that a supply issue will prevent business from being carried out, what insurer should be notified?
Contingent business interuption.
what insurance covers loss of profits when a project doesn’t start on time?
DSU - Delay in start-up
what policy does event cancellation, weather-related insurance, prize indemnity, etc. fall under?
Contingency
A competition is being run where there is a chance to win a car. What insurance would the provider take to ensure they don’t pay out the full amount for the car in the event of a win?
Prize indemnity.
What are the three main classes of business in the London Market?
Marine
Non-Marine
Aviation
What is reinsurance?
A contract of insurance when the party buying the policy is an insurer.
What are three reasons for reinsurance?
- Risk Transfer
- To even out peaks and troughs
- To increase capacity
what is a captive insurer?
Set up as part of a larger organisation and only takes risks from its parent company.
What is the act of sharing risk with reinsurers?
To Cede
What is a Bordereau(X)?
Formatted spreadsheet on which risk and claim information can be presented to reinsurers
Who is the cedent?
Insurer passing on risk to reinsurers
What is the ‘Cession’?
The share of risk being passed to reinsurers.
What is the term given to reinsurance purchased for an individual risk?
Facultative reinsurance
What is a retrocedent?
A reinsurer claiming reinsurance
What is the term for a cession where the entity ceding is already a reinsurer?
Retrocession
What is treaty reinsurance/
Reinsurance that can be purchased to cover a wide portfolio of risk
What three things fall under marine liability?
- Port authorities
- Shipbuilding repairers
- Marina owners
What three things fall under aviation liability?
- Passengers
- Third parties eg. baggage handlers and ground staff
- Product related eg. food poisoning from plane catering
