3. Main classes of business written in the London market Flashcards
Explain Hull and yacht insurance
Physical loss or damage type insurance also known as first party or short-tail insurance
Explain builder’s risk insurance
Type of marine insurance covering ship construction.
Physical damage and liability cover
What are pecuniary insurances?
Monetary loss insurances
Money insurance - risk to valuable documents or money
Fidelity guarantee - fraud during the policy period
What are key construction insurances?
Contractors all risk (CAR)
Erection all risk (EAR)
What is bloodstock insurance and livestock insurance?
Bloodstock - horses / racehorses
Livestock - Other animals
Contingency insurance
event cancellation / weather related insurance / prize indemnity / death and disgrace and over-redemption
3 features of kidnap and ransom insurance
Payment of ransom
Payment of medical expenses for the captured person once release
Provision of a negotiation team
Types of aviation insurance
Physical damage
Aviation liabilities
Loss of license / loss of use insurance - replacement income stream, after a waiting period
Airport operators (premises, product, hangar keeper - liabilities)
Bordereau
Formatted spreadsheet on which risk and claim information can be presented to reinsurance - typical for treaty reinsurance
To cede
Sharing risk with reinsurer (cedant is original insurer)
Collecting note
The document use to present the claim to reinsurers under an excess of loss contract
Facultative reinsurance
Reinsurance for an individual risk
Non-proportional reinsurance
Reinsurance where the premium and claims do not have a direct correlation
Premium set more in line with a direct insurance
Known as vertical protection (excess of loss)
Proportional reinsurance
Premium and claims are shared between insurer and reinsurer in pre-agreed proportions
Reinstatement
Bring excess of loss ‘back to life’ through additional premium
Known as horizontal protection
