C3 Flashcards
What is marine insurance
Generally cover for risks that relate to the sea
Hull and yacht insurance characteristics
Hull is the vessel itself and the cover is for physical damage to that vessel
Yacht insurance covers sailing, motor and inland vessels
What are commercial vessels
Cargo
Cruise ships
Specialist vessels
What is particular average
Physical damage to commercial vessels
What is builders risk insurance
Physical damage and liability cover for losses that may occur during construction of a vessel
What is loss of earnings insurance
Cover for when a ship owner cannot use their ship because it’s been damaged
What is a waiting period
Vessel must be out of action for a specific amount of time before a claim under the policy
What does cargo insurance cover
Physical damage for items being moved around
What is goods in transit cover
Liability insurance for a person or organisation who is responsible for moving the items around
What is stock throughput insurance
An end to end product combining a transit policy with a storage policy
Meaning if there are any gaps in cover throughout the journey of the stock this acts as a back up policy
What is jewellers block insurance
Packaged policies covering property and liability in respect of jewellery
What is specie insurance
Covers loose gemstones, precious metals and valuable documents from physical loss or damage
What is fine art insurance
Covers paintings, sculptures and installations
What is satellite pre launch insurance
Specialist cargo cover for moving a satellite from the manufacturing facility to the rocket launch pad
What is cash in transit insurance
Specialist cargo covers for moving money to different locations
What is war and strikes insurance
Covers captures, seizures and any damage that might be caused by ancient mines or similar aincirmt weapons
What cover is available for ship owners
Any legal liability they may incur by injuring someone or damaging their property
Could be crew or other visitors to their vessel or even damage to docks or ports
What is PRI
Political risk insurance
Cover includes asset risks contract frustrations and war on land
What is offshore energy insurance
3 phases of operation
Exploration phase - searching for oil and gas
Construction phase - construction of a permanent rig
Operational phase - covers day to day business once rig is in place
What is aviation insurance
Physical damage insurance which covers damage to
Private pleasure fixed wing aircraft
Commercial aircraft
Rotary aircraft
Gliders
Microlights
Hot air balloons
Drones
Aviation liabilities
Cover for passengers and third party liability and products related liability e.g food poisoning from plane food
Loss of license insurance
Provides cover for individuals such as piolets who have failed their medical exam and are unable to work
Type of benefit policy
Airport operators insurance
Premises liability cover and hanger keepers liability while planes are being stored
What is employers liability insurance
Cover death or injury to employees that happen during the corse of their employment
What is public liability insurance
Covers injury or property damage to members of the public
What is professional liability/indemnity insurance
Covers for allegations of negligence or incorrect advice by a professional eg lawyer of insurance intermediaries
What is motor liability insurance
Compulsory cover in the uk for third party injury or property damage
What is products liability insurance
Covers physical damage or injuries by a product
What is bloodstock insurance
Covers horses race horses and competition horses from death or illness
What is livestock insurance
Covers animals such as alpacas sheep and cows from death or illness
What is contingency insurance
Event cancellation
Death and disgrace (in advertising)
Prize/hole in one indemnity (actually win)
Over redemption (of prizes)
What is personal accident insurance
Benefit policy that provides weekly or monthly benefits for an injured person suffering permeant or temporary disablement
What is kidnapp and ransom insurance
Cover for the capture of someone and the demanding payment for their release
Malicious product tamper/ extortion/ product recall insurance
Assists the insured with the costs of action that need to be taken when they have been blackmailed or have had their products tampered with
Intellectual property insurance
Covers costs where there has been theft of copyright trademarks or patents
What is property insurance
Covers physical damage for building
What is a building
Anything that stays fixed
What is stock
Anything that would fall out of an upside of own building
What is stock insurance
Covers physical damage to stock at the insureds premises
What is theft insurance
Cover can be in place where there has been forcible entry or exit
What is glass insurance
Cover to board up properties following a breakage
What is money insurance and what type of insurance is it
Covers the risk of money and valuable documents
A type of pecuniary insurance
What is fidelity guarantee insurance and what type of insurance is it
Covers fraudulent acts by employees such as stealing the companies petty cash
A type of pecuniary insurance
What is construction insurance
Covers both physical damage and liability cover including CAR construction risks and EAR erectional risks
What is onshore energy insurance
Covers midstream and downstream energy risks which could include anything in land such as wind farms and nuclear power stations
What is cyber insurance
Covers issues such as
errors and omissions
Network security failures
Privacy breaches
Covers exposures such as
Ransom payments
Physical damage to systems
Regulatory investigations
What is business interruption insurance
Covers loss of profits due to material damage e.g machine breaking down at factory
What is ALOP
Advance loss of profits
What is DSU
Delay to start up
What is reinsurance
A specialist form of cover purchased by insurers and is another method of transferring risk
What does reinsurance allow underwriters to do
Increase underwriting capacity
How does reinsurance help the book of business
Helps smooth peaks and troughs
How does reinsurance help insurers
Access different geographical regions and new classes of business without taking on too much risk upfront
Who are the three main sellers of reinsurance
Specialist companies
Lloyds syndicates
General insurers
What is ceding a risk
Reinsuring a risk
Who is the cédant
The original insurer that passes the risk to the reinsurer/ceding office
What is retrocession
When reinsurers purchase reinsurance
Who is the rétrocédant
The reinsurers reinsurer
What is the retrocessionaire
The company that takes on the retrocession risk from the reinsurer
What is a bordereau
A spreadsheet where risk and claim info can be presented to reinsurers
What is a cession
Share of the risk that is passed onto reinsurers
What is a collecting note
Document used to present a claim to reinsurers
What is a reinstatement/horizontal protection
Where for a reinstatement premium (further premium) à cédant may reinstate the level of cover once it has been exhausted
What is facultative/fac reinsurance
Purchased for large unique and individual risk requiring abit more of a tailored solution
What is treaty reinsurance
Reinsurance is purchased to cover a large portfolio of similar risks and are reinsured collectively
Proportional reinsurance
Includes quota share reinsurance and surplus lines reinsurance where the reinsurer takes a share of the risk and is liable for the claims proportional to their share
Non proportional reinsurance
Includes excess of loss reinsurance and stop loss reinsurance for cover over a pre agreed amount up to set limits
What are hill and yacht recreational vessels
Sailing vessels
Inland vessels
Motor vessels
Examples of commercial vessels
Cargo
Cruise and passenger
Specialist
What is short tail
Eg property damage
Claims sorted quicker
What is long tail
Claims take longer to receive indemnity
What is the primary purpose of ‘honour policies’ in marine insurance?
Honour policies are used in situations where the insurable interest is not entirely clear, making them unenforceable in court.
