Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

LM1 > 3. Main classes written in London Market > Flashcards

3. Main classes written in London Market Flashcards

1
Q

What categories of insurance are written in London Market

A
  1. Marine
  2. Non-marine
  3. Aviation
  4. Reinsurance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Breakdown of the insurance categories and sub types in London Market

A

Marine
- Hull / Cargo / Liability / War & Strike / BI / Misc

Non-Marine
-Property
-Business Interruption
-Casualty
- Bloodstock & Livestock
- Product
- IP
- Kidnap & Ransome
- Contingency
- Personal Accident

Aviation
- Physical Damage Insurance / Liabilities / Loss of Use & License / Airport Operators

Reinsurance
- Prop / Non-Prop / Treaty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define reinsurance

A

Insuring those risks that an insurance company has taken on.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the benefits of reinsurance

A

Even out peaks & troughs (consistency)
Increase financial capacity (This is monitored by regulators)
Risk transfer
Spreads costs
Protect Insurers portfolio of similar written risks
Allows Insurer to enter new Business class & Territory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Main centres for Reinsurance

A

Lloyds
IUA (International Underwriting Association)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who are the main buyers of Reinsurance

A

Insurers
Reinsurers
Captive Insurers (Takes risks only from parent company)
Mutuals (Like minded groups of insurers forming pool)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define the names of the players in Reinsurance

A

Cedant - Original insurer who passes risk to reinsurer
Retrocedent - Reinsurer buying reinsurance for themselves
Retrocessionaire - Reinsurer accepting reinsurance from another reinsurer

Cession - Risk that is passed to Reinsurer
Retrocession - Reinsurance risk to another reinsurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Difference between Non-Prop & Proportional reinsurance

A

Prop = Risk/loss is shared proportionally
- Horizontal protection

Non = Risk only transfers to reinsurer past certain threshold (premium set like normal insurance)
- Vertical protection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is reinstatement (Reinsurance)

A

Where the reinsurance layer has been exhausted, it is provided again

Reinstatement Premium is paid for this

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the two main types of reinsurance

A

Proportional

Non-Proportional

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Treaty reinsurance

A

Cedant transfers (cedes) proportion of entire risk exposure to reinsurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Who are the main sellers of reinsurance

A

Dedicated Reinsurers (specialists)
Lloyds syndicate
Insurance companies who do both

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What risks do marine insurers write that others don’t

A

Honour policies (where insurable interest is unclear)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the common features of hull (or similar) insurance

A

Damage to the insured ship (known as - Short Tail or First Party)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Builders Risk Insurance

A

Combined physical & liability cover for building of ship
(Either for Owner or Owner & Build Yard)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Types of Marine Insurance

A

Marine Hull / Yacht
Loss of earnings
Marine Cargo
Marine Liability
Marine War & Strike
Misc (PRI & Offshore Energy)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Loss of Earnings Insurance (Marine)

A

Covers loss of earnings when ship is damaged

Waiting period rather than financial excess/deductible.

Common - 150 days indemnity, 14 days waiting period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Three main types of Marine Insurance

A
  1. Loss of income
  2. Liabilities incurred to third party
  3. Damage to ship or goods (Cargo)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Types of Proportional Reinsurance

A

Quota Share - Share based on percentage

Surplus Share - Over certain threshold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Difference between Cargo & Goods in Transit Insurance

A

Cargo = Damage insurance for the goods when being moved around

Goods in Transit = Liability for person / org moving goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Cargo insurance

A

Covers physical damage to goods when they are being transported

NOT liability to third party for this damage

NOT storage (This is combined in Stock Throughput Insurance)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What other types of cover are classed as ‘Marine Cargo’

A

Cargo - Physical loss or damage cover of goods when transported

Stock throughput Insurance - Combined cargo transit & storage policy

Jewellers - Combined property and liability cover for jewellery industry

Specie - Covers physical loss & damage for special high value items (Metals, gemstones, valuable docs)

Fine Art - Physical loss & damage cover for paintings, sculptures and ‘installations’. Covers repair and ‘depreciation’ in value

Satellite - Covers the physical loss or damage of satellite when moving pre launch

Cash in transit - Physical loss or damage to money when moving

Goods in transit** - Liability of carrier when moving cargo

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Define War & Strike in insurance context

A

Strike = A concerted stoppage of work

War = War and civil war types risks, including captures and seizures

^^ Used temporarily when marine / cargo enters high conflict zone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is included in Marine Hull

A

Short Tail / First Party
Builders Risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Common theme of Marine Cargo
Physical loss or damage Except - Goods in Transit (liability)
26
Marine Liability Insurance
Covers legal liability for damage or injury to third party, caused by owners vessel or ship (Type of Long Tail Insurance - Long time between inception and claim) Wider coverage than Collison Liability in Marine Hull cover.
27
What is covered in Marine Liability Insurance
Injury to crew or visitors Damage to property (Not other ships) - Ports Wreckage Covers damage to vessel when rented / chartered Cargo damage - Liability regarding this Pollution
28
Who needs Marine Liability Insurance
Ship owners People Chartering ships Port Authorities Marina Owners Shipbuilders / repairers
29
What is PRI
Political Risk Insurance - Cover for actions/inactions/restrictions imposed by HOSTILE or UNCONSTITUTIONAL governments in 2nd or 3rd world countries that impacts goods or services
30
Offshore Energy Insurance
Upstream = The process of extraction of Oil & Gas from the ground Offshore Energy covers this process when it occurs under seabed. (3 stages)
31
Three stages of Upstream energy
1. Exploration (Physical & Liability) 2. Construction (Physical & Liability) 3. Operational (Physical Risk, Damage, War & Liability)
32
What are the 9 insurances that fall into 'Non-Marine'
Property Business Interruption Casualty Bloodstock & Livestock Product IP Kidnap & Ransome Contingency Personal Accident
33
What lines fall under Property Insurance (Wider heading)
Property Pecuniary Construction Onshore Energy Cyber
34
What buildings are covered under property Insurance
Office Industrial Public Rental Agricultural Domestic
35
What is different about a property policy compared to marine
Includes option of reinstatement as method of indemnification
36
What is Property Insurance? (Sub)
Physical Loss Damage insurance for range of buildings (Offices, Industrial, Rentals, Public, Agricultural, Domestic)
37
What are the other types of Property (Building) Insurance
Stock Glass Theft Goods in Transit
38
What is covered under traditional Property Insurance for Industrial building
(Factories & Warehouses) Machinery Fixtures & Fittings Raw Materials Final product before shipment
39
Pecuniary Insurances
Cover monetary loss not physical damage Two types: 1. Money Insurance - Risks of money and valuable docs (tickets & vouchers) 2. Fidelity Insurance - Covers fraudulent acts during policy period (Stealing employee) 3. Business Interruption
40
Construction Insurance
Each party should have their own insurance, but central one is important to avoid gaps in coverage Contractors All Risks (CAR) - Purchased by lead for all subs Erection All Risks (EAR) - Those who put up machinery or steel structures ^Both cover Property Damage and Bodily Injury to Third Parties ^
41
What types of liability must be covered under Construction Insurance
Property Damage Bodily injury (To third parties)
42
Onshore Energy
Covers risks after energy is found and extracted from earth Midstream Insurance - Pipelines Downstream - Refining & Processing Also includes Mining, Renewable Energy and Power Generations
43
Cyber Insurance and issues faced?
Covers losses related to use of networks to access online systems and info E&O related to Cyber risks Network Security Privacy Breaches
44
What is covered in Cyber Insurance
BI Rep Protection Ransom payments Practical Support Physical Damage Regulatory Investigations D&O Liability Contingent risks
45
Business Interruption Insurance (Non-Marine)
Usually replaces physical loss or damage to *INSURED PROPERTY* causing loss of income (Waiting period applies) **Contingent Business Interruption Insurance** = When BI is not caused by own property
46
What are subtypes of Property BI
Advanced Loss of Profits (Damage) Delay in Start Ups (Non arrival) - Both cover losses of profit caused by delays (Marine & Non-marine)
47
Difference between Property Insurance and Liability
Property = Physical Loss & Damage cover Liability = Covers legal liabilities to third parties
48
What Liabilities are covered under Casualty
Employers - Covers employers for claims made by employees who are injured at work Public - Covers loss or damage to public by premises or employee Professional - Covers claims of professional negligence or bad advice which caused loss or damage (Medical Malpractice) Motor - Compulsory General - Wider, non specific liability cover (Advertising Liability) Product - Covers insured when their product causes damage to someone (Anyone in the supply chain)
49
Advertising Liability
Type of liability covered under General Liability Covers slander damage to third parties from untrue writing about them
50
Bloodstock & Livestock Insurance
Insurance for animals used for business Bloodstock - Horses (Show horses, race horses) Livestock - Covers most other animals Main risk = Death or illness, OR infertility
51
Contingency Insurance (Non-marine)
Specific group of random, fortuitus event
52
What are the insurances covered under Contingency
Event Cancellation (Illness causing cancellation) Weather-related Insurances (Causing delay or cancellation) Prize Indemnity (Covers unlikely prizes) Death & Disgrace (Covers reshooting costs for advertising campaigns due to inadequate or death to original person) Over-Redemption (Offers and promotion costs on items)
53
Kidnap & Ransome
Ransome Payment Medical expenses when released Negotiation team Written in marine for pirate seizure of goods or boats.
54
Personal Accident Insurance
1. Personal Accident - Schedules / lump sums when triggered 2. Personal Illness & Sickness 3. Death in Service - Lump sum of salary
55
Extortion
Demanding of money in exchange for concealment or silence (Blackmail) Common in Product tampering or Product recall
56
What happens when it is found out of Product Tampering
Must send warning to public Stock removed and destroyed Potential recall Insurance = Could be physical damage or reputation maintenance
57
Intellectual property (and IP Insurance)
IP is the rights that companies or individuals have over their own work / inventions (Trademarks, Copyright, Patents, Logos) Insurance = Covers legal costs of defending action against IP or for interfering in someone else's IP
58
What is the issue in Intellectual Property Law
When brand names become part of English language (e.g Hoover)
59
4 types of Aviation Insurance
1. Physical Damage Insurance 2. Aviation Liabilities 3. Loss of license / Loss of use 4. Airport operators
60
What are the types of Aircrafts
- Fixed Wing Aircraft - Private pleasure - Commercial - Rotary - Gliders - Microlights - Hot Air Balloons - Unmanned / Drones
61
What Liabilities are usually covered in standard aviation policies for airlines
Passengers - Damage or injury when boarding, flying or disembarking (Incl luggage) Third Parties Excl Passengers - Ground staff Products Related Liability
62
Loss of License / Loss of use insurance
Loss of Use = When aircraft is damaged and cannot be used. Provides income Loss of License = Personal income for individual who has lost their license due to failed medical (If not their fault) Waiting period applies to both^^
63
Airport Operators Insurance
Insurance protection for risks faced by those companies who manage and operate airports (Physical damage & Liability) Main Areas; 1. Premises Liability 2. Products Liability (Fuel) 3. Hangar-Keepers Liability (Storage or Maintenance)

LM1 (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions