Assignment 12 Flashcards
Excess liability policy
A policy that covers liability claims in excess of the limits of an underlying policy or a stated retention amount.
Umbrella liability policy
A liability policy that provides excess coverage above underlying policies and may also provide coverage not available in the underlying policies, subject to a self-insured retention.
Self-insured retention (SIR)
An amount that is deducted from claims that are payable under an umbrella liability policy and that are not covered at all by any primary policy.
Professional liability insurance
Insurance that covers persons engaged in various occupations against liability resulting from their rendering or failing to render professional services.
Management liability insurance
Insurance that covers organizations and in some cases their directors, officers, and other employees against liability claims for damages resulting from various wrongful acts that are not covered under other commercial liability polices; common examples are directors and officers liability insurance, employment practices liability insurance, employee benefits liability insurance, and fiduciary liability insurance.
Retroactive date
The date on or after which the injury, damage, or other insured event must occur in order to be covered in a claims-made liability policy.
Extended reporting period (ERP)
An additional period (also called a “tail”) following the expiration of a claims-made policy, during which the expired policy will cover claims first made for injury or damage that occurred on or after the policy’s retroactive date (if any) and before policy expiration.
Directors and officers (D&O) liability insurance
Insurance that covers a corporation’s directors and officers against liability for their wrongful acts covered by the policy and also covers the sums that the insured corporation is required or permitted by law to pay to the directors and officers as indemnification.
Entity coverage
Coverage extension of D&O liability policies for claims made directly against a corporation (the “entity”) for wrongful acts covered by the policy.
Employment practices liability (EPL) insurance
Insurance that covers an organization, its directors and officers, and its employees against claims alleging damages because of wrongful employment practices such as sexual harassment, wrongful termination, and unlawful discrimination.
Fiduciary liability insurance
Insurance that covers the fiduciaries of an employee benefit plan against liability claims alleging breach of their fiduciary duties involving discretionary judgment.
Employee benefits liability insurance
Insurance that covers an employer against liability claims alleging improper advice or other errors or omissions committed while administering the employer’s employee benefit plans.
Site-specific environmental impairment liability (EIL) policy
An insurance policy that covers third-party claims arising from either sudden or gradual releases of pollutants from specified locations.
Underground storage tank (UST) compliance policy
An insurance policy that provides proof of financial responsibility under governmental regulations that apply to the owners and operators of underground storage tanks containing fuels or other hazardous materials.
Remediation stop-loss policy (cost cap policy)
An insurance policy purchased to insure remediation costs that exceed the projected or anticipated costs of performing an environmental cleanup of a specific location that is being sold.
