Assignment #6

Question 1

Commercial Liability Loss Specialty Exposures

Answer 1

D&O Liability
Employment Practices Liability
Fiduciary Liability

Question 2

4 Fiduciary Duties

Answer 2

Care – stay informed to make good decisions
Loyalty – acting in the best interest of the beneficiary at all times
Disclosure – disclosing necessary information and truthful facts
Obedience – adhering to all corporate rules

Liability arises from business judgment rule

Question 3

FAIR plans

Answer 3

Fair Access to Insurance Requirements plans – used to help insure less than desirable risks

Question 4

NFIP Coverage

Answer 4

Coverage for losses as well as
- Debris removal
- Cost of measures taken to prevent the loss (such as purchasing sandbags or plywood to block doorways and windows)
- Pollution cleanup
- Cost of compliance with flood rules

Question 5

D&O coverages

Answer 5

Coverage A – coverage for directors and officers
Coverage B – indemnification of entity
Coverage C – entity coverage

Question 6

Personal Specialty Risk Assessment Steps (3)

Answer 6

(1) Geographic Concentration of Property
(2) Appropriate Property Valuation
(3) Accurate Modeling

Question 7

Commercial Specialty Risk Assessment (4)

Answer 7

(1) Equipment breakdown coverage
(2) Professional liability coverage
(3) HPRs
(4) Diversification