Chapter 2a - Non- marine Risks Written In The London Market Flashcards

Question

Business Interruption - what is the purpose

Answer 1

To replace income which would have been received had loss to property not occurred and business not been interrupted. Correct SI needs to be established so payout reflects loss. Waiting period (the deductible/excess) is expressed in days.

Answer 2

- Insurers use accountants to investigate loss suffered, intention of not automatically paying out max - Standard BI requires some physical loss damage to property and require there to have been a recoverable claim on the property Claims: Supplier of raw materials suffers loss and cannot supply Power cut off from loss at power station

Answer 3

Property risks written via delegated underwriting such as binding authorities or service companies.

Answer 4

Protects directors and officers for claims made by shareholders/investors where their behaviour has caused financial loss. - categorised as US or non-US - covers financial loss - can include employment claims as extension - written on claims made basis Exclusions: Fraud, insured persons making financial gain, anything being investigated or notified already before inception, pollution/war/radiation, bodily injury/emotional distress

Answer 5

Interchangeable term with PI and Professional Negligence Covers professionals against claims for breach of duty of care, negligence, errors and omissions PI compulsory for lawyers and accountants and is a claims made policy - make a claim when a claim is made against them

Answer 6

After a certain period of time your right to recover in law disappears. In English law: 6 years from alleged breach Tort claims: 6 years reduced to 3 for personal injury

Answer 7

- Accidental injury to 3rd party - Accidental loss or damage to property - Nuisance, trespass to land/goods, interference with 3rd party’s right to air, light or water When claims made the issue is if the insured is actually liable and to what extent - does another party share blame?

Answer 8

Indemnity for injury or damage but only against liability in connection to a product. Issue is who is to blame? Many parties contribute to putting a product together.

Answer 9

Written in wider UK composite market, not usually LM. - legal liability of the insured for injury to employees - legal cost of defending claims ELTO - used to trace insurance in the past

Answer 10

Combined/comprehensive liability insurance bought by many as it combines different classes of liability and adds in others like advertising.

Answer 11

New type of liability developed to respond to litigation faced by an insured resulting from harm involving guns/other weapons. Add cover includes cost of crisis management, post event counselling

Answer 12

``` Any contract of insurance where insurer agrees on occurrence of event that it will pay out. Eg: Financial failure of companies Change in interest rate Change in rates of exchange Change in property value ``` All event could lead to financial gain so FG is perceived to be on edge of gambling Can be written in Lloyd’s if permission sought in normal way via business planning Less than 2% of capacity - more likely to be given permission

Answer 13

People threaten companies to try to gain money eg. Alleging their products have been tampered with. ``` Malicious product tamper insurance assists with cost of: Removing unsafe goods Maintaining brand image Alternative goods Maintaining client confidence ``` Insurance for accidental contamination triggered by illness

Answer 14

A product is dangerous and needs to be recalled otherwise could risk large liability claim Recall insurance pays for: - Advertising recall - extra staff - additional space hired - shipping in affected products - disposing of products - redistribution costs

Answer 15

Lloyd’s syndicates can’t write war or related perils risks without Lloyd’s permission. Have to provide realistic disaster scenario returns, and since 2012, returns related to moveable risks.

Answer 16

``` PV covers: Terrorism Sabotage Riots, strikes, and civil commotions Malicious damage Insurrection, revolution or rebellion Mutiny or coup d’etat War or civil war ```

Answer 17

Standalone products covering loss of information from IT systems and networks or damage to them, and costs of immediate aftermath 1st party: Covers your own assets 3rd party: Covers risks of security breaches which leads to loss of others data

Answer 18

Company buys another company- risks faced by both sides During negotiations for merger or acquisition parties give each other mutual warranties and indemnities. If negotiations break down warranty and indemnity insurance will protect them. Policies will be crafted to match actual terms of merger and acquisition transaction

Chapter 2a - Non- marine Risks Written In The London Market Flashcards

(42 cards)