Assignment #3 Flashcards
Risk Management Steps
(1) Scan environment
(2) Identify risks
(3) Analyze risks
(4) Treat risks
(5) Monitor and review
Personal Liability Loss Exposures (3)
Breach of legal duty (Negligence, intentional tort, strict liability)
Contractual liability
Statutory or regulatory requirements
Special vs General Damages
Special damages are particular, out of pocket losses
- costs incurred to restore property
- payment for bills or expenses related to the damage
- lost wages / earnings
General damages are assumed with special damages (aka direct, necessary)
- compensation pain and suffering
- future effect of disfigurement
- emotional distress
Types of property
(1) Real property
(1) Personal property
Must have legal interest in property to sustain a loss
Policy Forms
HO 2 - Broad Form (Owner occupants)
HO 3 - Special Form (Owner occupants)
HO 4 - Renters (Contents Broad Form)
HO 5 - Comprehensive (Owner occupants)
HO 6 - Condo owners
HO 8 - Modified Coverage (Owner occupants)
HO 2 Perils
(1) Fire or lightning
(2) Windstorm or hail
(3) Explosion
(4) Riot or Civil Commotion
(5) Aircraft
(6) Vehicles
(7) Smoke
(8) Vandalism or malicious mischief
(9) Theft
(10) Volcanic eruption
HO 3 Special Perils
Falling Objects
Weight of Ice Snow Sleet
Overflow of Water / Steam
Freezing
Electrical Currents
Personal Auto Policy (PAP) Coverages
Part A - liability coverage
Part B - med pay
Part C - uninsured / underinsured
Part D - APD (comp / coll)
Part E - duties after accident / loss
Part F - general provisions
No Fault Options
Modified No-Fault Plans – Insured recovers from their insurer first but then can sue for economic damages above what is recovered or non-economic damages if above state threshold
Add-on Plans – add no fault protection but also can sue
Choice No-Fault Plans – choose either modified or add-on
Types of special personal coverage
(1) Mobilehomes
(2) Personal watercraft
(3) Personal umbrella ($1M to $10M)
Risk Profile Analysis (3 techniques)
(1) Classification
(2) Regression analysis
(3) Association rule learning
CAT modeling inputs (4)
(1) Geographic location
(2) Type of catastrophe
(3) Exposure information
(4) Replacement cost estimates
