Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Lm1 > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

What are honour policies (not enforceable in court)?

A

When insurable interest is not clear

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 3 sub-divisions of insurance products?

A
  1. Property
  2. Liability
  3. Pecuniary - insurance relating to money (e.g. business interruption cover + legal expenses)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does hull (boat) + yacht/recreational vessel insurance relate to?

A

•Relates to sailing, motor, + inland vessels (canal boats)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does commercial vessel insurance relate to?

A

•Cargo, cruise/passenger, + specialist vessels (e.g. drilling ships)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does any marine hull insurance cover?

A

1st party / short-tail insurance: damage to the insured ship, which makes this a physical loss or damage type of insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What’s particular average in marine hull insurance?

A

Physical damage to the insured’s property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What happens when an insured vessel collides w/ another vessel?

A

Each side will have to pay damages to the other ship that relates to its share of the blame

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is builder’s risk insurance in marine hull insurance?

A

•Provides a combined physical damage + liability cover where the insured can be just the owner or a owner + builder

•This is because construction of vessel is expensive + lengthy process for owner + builder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

In marine, what is loss of earning insurance (business interruption cover)?

A

•Used when a shipowner cannot carry passengers or cargo on their vessel or hire the vessel out to others
•Typically would require some damage to the vessel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is goods in transit insurance?

A

•Liability insurance for the person/organisation moving the items around
•Liability claims = 3rd party claims

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is cargo insurance?

A

•Covers physical damage to the goods whilst they’re in their journey / being moved around
•Insures journeys by road, rail, air, + sea

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is stock throughput insurance?

A

Covers storage-type risks which are moving + bring held in storage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is jeweller’s block insurance?

A

•A physical loss or damage insurance covering businesses from manufacturing, trade shows, exhibitions, etc
•Written in cargo + non-marine market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is specie insurance?

A

•Physical loss or damage insurance covering loose gemstones, valuable documents, + precious metals (e.g. gold)
•Written in cargo + non-marine market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is fine-art insurance?

A

•A physical loss or damage insurance covering the static risk whilst in gallery or museum + any transit between collections or to exhibitions
• Covers paintings + items such as sculptures (installations)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

In cargo, what is satellite pre-launch insurance?

A

•Covers the satellite for physical loss or damage until the launch insurer takes over
•Normally, cargo insurer comes off the risk when the engines are intentionally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

In cargo, what is an issue with satellite pre-launch insurance?

A

Aggregation as rockets will often be launching more than 1 satellite at once which exposes them to the same perils

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is cash in transit insurance?

A

•Covers the loss or damage to cash when it’s moving between locations
•Written in cargo + non-marine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What key risk prevention criteria do underwriters impose in the policy for cash in transit insurance?

A

Varying routes + armed truck crews

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is war insurance?

A

Covers war + civil war type risks, captures + seizures, + damage caused by abandoned mines or ancient weapons

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is strikes insurance?

A

•Covers strikes + damage caused by terrorists or those acting from a political or religious motive
•Strikes = concerted stoppage of work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is marine liabilities in insurance?

A

•Shipowner should purchase insurance in case they incur any legal liabilities by injuring someone else or their property - for 3rd party insurance
•Type of long-tail insurance
•Port authorities, shipbuilders/repairers, + marina owner should have insurance to protect themselves from financial consequences of incurring liabilities to others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are examples of liabilities that marine-related industries can incur?

A

•Injury or death of crew or visitors to the vessel
•Damage to cargo being carried
•Pollution caused by escape of cargo, waste water, or the vessel’s fuel
•Damage to other people’s property by the vessel colliding w/ them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is political risk insurance?

A

•Helps investors/businesses mitigate/manage risks arising from the actions/restrictions of/by hostile government actions
•Hence, helping foster a stable environment for trade + investments into emerging markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What is offshore energy insurance?
•This is the upstream area of business + relates to the location + extraction of oil + gas from under the seabed
26
What does property insurance relate to?
Buildings, machinery + plant, stock + other types of content - anything that’s your property
27
What is property insurance?
Covers physical damage for buildings
28
In property, what is theft insurance?
Covers theft involving forcible entry to the property
29
In property, what is stock insurance?
Physical damage insurance covering stock at the insured’s premises
30
In property, what is glass insurance?
Covers the glass elements of a building
31
In property, what are the 3 types of pecuniary insurance?
• Money insurance - applies to risks of money + valuable documents, such as tickets + vouchers •Fidelity guarantee insurance - responds to fraudulent acts committed during the policy period •Business interruption insurance
32
In property, what does pecuniary insurances cover?
Covers monetary loss
33
In construction insurance, what are 2 types of policies?
1.Contractors all risk (CAR) policies - purchased by the main contractor on behalf of other sub-contractors 2.Erection all risks (EAR) policies - purchased by the contractor responsible for installing machinery or steel structures
34
In construction, what are 2 types of liabilities that must be covered under contractors + erection all risks policies?
Damage to 3rd party property + bodily injury to 3rd parties
35
What is onshore energy insurance?
•Covers elements of the oil + gas industry that comes after it’s been located + recovered from the Earth •Midstream insurance covers pipelines, + downstream insurance covers the refining + chemical processing elements of the business
36
What can cyber policies cover?
• Business interruption •Reputation protection •Payment of ransoms when extortion is involved •Practical support •Contingent business interruption (where business is stopped because one of your suppliers has been hacked)
37
What is business interruption insurance?
•Requires physical loss/damage to the insured property, triggering the shutdown + consequence loss of income •So; it replaces lost income after a waiting period
38
What is contingent business interruption insurance?
Insured’s business is affected by the supplier, hence causes a loss of income
39
What is advanced loss of profits (ALOP) + delay in start-up (DSU) insurance?
•In marine (cargo) + non-marine insurance •Triggered by delays incurred because of physical damage occurring to assets, which delays the build process - hence, loss of profits, etc
40
What is employers’ liability?
Covers the employer if an employee becomes injured during their employment + makes a claim against their employer
41
What is public liability?
Covers any party who’s liable for loss/damage caused to members of the public visiting their premises or by any employee to a member of public
42
What is professional liability?
Covers professionals against the risk of claim being made against them for incorrect advice or negligent activity
43
What is motor liability?
•Covers liability for a 3rd party for loss or damage to them or their property •Not generally written in LM
44
What is general liability?
•Covers general areas of liability •E.g. advertising injury (claiming you’ve slandered someone else by writing something about them which is false)
45
What is products liability?
Covers products causing physical damage to to something or injury to someone
46
What is bloodstock (horses) + livestock insurance?
•Insurance on animals that are used for business •Insurance could pay out only if the animal dies or wider cover to pay for major medical expenses
47
What is contingency insurance for?
For event cancellation, weather-related insurances, prize indemnity, death + disgrace, + over-redemption (linked to offers + promotions)
48
What is personal illness or sickness insurance?
Triggered by sickness, accident, or injury that leads to unemployment
49
What is death in service insurance?
•Purchased by employers to cover when an employee dies + employer has to pay ‘death in service benefit’ to the employee’s beneficiary
50
What does kidnap + ransom insurance cover?
•Payment of ransom •Payment for medical expenses for the captured person once released •Provision of negotiation team to assist the insured family/company during the incident
51
What is intellectual property insurance?
•Intellectual property = rights that companies/individuals have to their work/inventions •Insurance covers the legal costs of defending an action against your intellectual property or if you’ve alleged to have interfered w/ someone else’s
52
In aviation, what is physical damage insurance?
•Will cover aircrafts for physical damage, but not wear + tear •Aircraft examples = commercial, private, gliders, hot air balloons, drones, etc
53
What are 3 aviation liabilities?
1. Passengers - covers injury occurred whilst boarding, disembarking, or on the plane 2. Covers baggage handlers + other ground staff 3. Products-related liabilities - e.g. for illness resulting from food provided on the plane
54
In aviation, what is loss of use insurance?
If aircraft is damaged n can’t be used, the insurance would provide a replacement income stream, after a waiting period
55
In aviation, what is loss of use insurance?
If aircraft is damaged n can’t be used, the insurance would provide a replacement income stream, after a waiting period
56
In aviation, what is loss of license insurance?
Insurance will provide replacement income if an individual has failed their medical resulting in loss of license to operate in their role
57
What are the 3 airport operators liability policies?
1. Premises liability 2. Products liability - if airport provides fuel for aircraft 3. Hanger-keepers liability - if airport provides maintenance or storage services for clients
58
What is reinsurance?
Insurers who want to transfer some of their risk to other insurers, reinsurers
59
What are the different ways of buying reinsurance?
•A single risk - often for unusual risks •A certain class of business •The insurer’s whole portfolio of business •Catastrophe losses
60
What are benefits of purchasing reinsurance?
•Increasing capacity • Smoothing peaks + troughs - reinsurance spreads the cost of very large losses over a period of time •Risk transfer •Write new lines of business
61
What are the benefits of writing/selling reinsurance?
•Accessing other geographical areas •Accessing other classes of business
62
What are captive insurers?
•They’re set up as part of a larger commercial organisation + takes risks only from its parent company/group •In the event of a loss, the only source of funds available are those within the captive
63
What are mutuals?
Like-minded organisations grouping together + forming an insurance pool
64
What are the 2 types of reinsurance?
1. Facultative 2. Treaty
65
What is facultative reinsurance?
Do it on a one-off basis
66
What is treaty reinsurance?
•This is contract reinsurance •Covers a wider portfolio of risks
67
What are the 2 types of treaty reinsurance?
1. Proportional - you do a straight split (premium + claims shares between insurer + reinsurer) 2. Non-proportional - insurer covers up to a certain limit + reinsurer takes the above
68
In treaty reinsurance, what are the 2 types of proportional reinsurance?
Quota share or surplus lines
69
In treaty reinsurance, what are the 2 types of non-proportional reinsurance?
Excess of loss or stop loss
70
In reinsurance, what is bordereau(x)?
Formatted spreadsheet on which risk + claim info is presented to reinsurers - typically for treaty reinsurance
71
What is ‘to cede’ in reinsurance?
The act of sharing the risk w/ reinsurers
72
Who is the cedant in reinsurance?
The original insurer who is passing the risk to reinsurers
73
What is ‘cession’ in reinsurance?
The share of the risk passed to reinsurers
74
What is ‘collecting note’ in reinsurance?
Document used to present the claim to reinsurers under an excess of loss contract
75
In non-proportional reinsurance, what is ‘reinstatement’?
A cedant can ‘bring the layer back to life’ or reinstate it, often by paying additional premium
76
In non-proportional reinsurance, what is ‘reinstatement’?
A cedant can ‘bring the layer back to life’ or reinstate it, often by paying additional premium
77
What is a ‘retrocedent’ in reinsurance?
Reinsurer obtaining reinsurance for itself
78
What is ‘retrocession’ in reinsurance?
A cession where the entity ceding is already a reinsurer
79
What is ‘retrocessionaire’ in reinsurance?
A reinsurer accepting reinsurance from an entity that is a reinsurer

Lm1 (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions