Ch. 9 Other Coverages Flashcards
What type of professional liability coverage will a medical doctor need?
Medical malpractice coverage
Medical malpractice, agents and brokers, errors and omissions, and directors and officers are examples of what type of liability insurance?
Professional Liability
What type of coverage do umbrella policies provide?
Excess coverage over the primary policy
What are parties to a surety bond?
The principal (or obligor), the obligee (or insured), and the guarantor (or surerty)
What is the name for the deductible in liability umbrella policies?
Self-insured Retention (SIR)
Where can National Flood Insurance be issued?
Only in participating, flood prone areas
When can insurance be sold through a surplus lines insurer?
When the insurance cannot be obtained through an authorized carrier
What is the minimum amount of additional coverage provided by umbrella policies?
$1 million
A person or business that requires coverage for all liability exposure should purchase what type of insurance?
Commercial General Liability (CGL) and Professional Liability
What is the purpose of the National Flood Insurance Program (NFIP)?
To fill the gap in flood coverage left by private insurers.
What is the name for nonadmitted insurers who are allowed to transact business in a state?
Surplus lines insurers
Professional Liability coverage protects the insured against legal liability resulting from what?
Errors and omissions
What is the purpose of surety bonds?
To guarantee that specific duties and obligations of the principal will be fullfilled
In surety bonds, who purchases the bond and promises to fulfill the obligation?
Principal or obligor
What are residual markets?
Insurance markets designed to assume risks that are generally not insurable in the normal insurance market.
