Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CII LM1 > Chapter 3 - Main Classes of Business Written in the London Market > Flashcards

Chapter 3 - Main Classes of Business Written in the London Market Flashcards

1
Q

What are honour policies?

A

Policy is enough for proof of insurable interest

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

What is hull and yacht insurance

A

First party damage / physical loss insurance - each ship has to pay losses to the other according to their part of the blame

Policyholders make claim for their proportion of the blame in addition to any damage suffered by their own vessell

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

What is builder’s risk insurance?

A

Damage and liability insurance due to lengthy time to build - takes into account increasing values as building of ship progresses

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

What is loss of earnings insurance?

A

Marine version of business interruption, typically requires damage to vessel

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

What is cargo and goods in transit insurance?

A

Insurance for the person/organisation moving goods - damage to their own property or liability in case they damage goods in their care

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

What is cargo insurance?

A

Covers physical damage to goods whilst on a journey

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

What is stock throughput insurance?

A

Combines transit and storage policy for cargo, so covered if layover at a port during transit

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

What is jeweller’s block insurance?

A

Package policy covering property and liability from manufacture through trade shows and exhibitions and retail.

Physical damage / loss insurance not including mysterious disappearance due to nature of jewellery

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

What does specie insurance cover?

A

Physical loss or damage to:

  • loose gemstones
  • precious metals
  • valuable documents
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is satellite launch insurance?

A

Essentially cargo moving between manufacturers and launch pad (marine market)

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

What is cash in transit insurance?

A

Covers movement of money between locations, underwriters often put risk prevention measures into the policy terms

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

What is goods in transit insurance?

A

Covers liability of carriers in respect to good being carried

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

What is fine art insurance?

A

Physical loss or damage covering static in museum and in transit

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

What is war insurance?

A

Covers war type risks as well as damage caused by abandoned mines etc

Specifically does not cover piracy, piracy covered in hull

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

What is strike insurance?

A

Covers damaged caused by terrorists or those acting from political or religious motive

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

What kind of things should vessel owners and operators insure against?

A
  • injury or death of crew / visitors
  • pollution by escape of cargo
  • damage to cargo being carried
  • damage to others property
  • removal of wreck after incident
  • damage to vessel if hired from owner
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Who else should consider buying marine insurance?-

A
  • port authorities
  • shipbuilders / repairers
  • marina owners
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is political risks insurance?

A

Offers means for investors and businesses to mitigate and manage risks arising from actions of or restrictions imposed by hostile or unconstitutional governmental actions

Creates more stable environment for trade

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

What is offshore energy insurance and what are the key stages of it?

A

Location and extraction of oil and gas from under the seabed

  1. exploration phase
  2. construction phase
  3. operational phase
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is property insurance?

A

Physical damage to buildings, can also cover contents - indemnified by reinstatement generally

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

What is stock insurance in property?

A

Physical damage to stock at insured’s premises, regular declarations of stock required

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

What is theft insurance in property?

A

Covers forcible entry to a property, does not pay out for not forced entry

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

What is pecuniary insurance?

A

Covers monetary loss rather than damage

Money insurance covers money and valuable documents which are responsibility of insured

Fidelity guarantee insurance respond to fraudulent acts committed during policy period

24
Q

What are CAR and EAR policies?

A

Contractors all risks
Erection all risks

Combined physical damage and liability cover for construction workers

25
Q

Important note about onshore insurance?

A

Doesn’t just relate to oil and gas, incorporates mining etc renewable energy sources

26
Q

What exposures can cyber policies cover?

A
  • BI
  • reputation
  • ransoms
  • physical damage to systems
  • d&o
  • contingent BI
27
Q

What do basic BI policies need to respond?

A

Physical loss or damage to insured property which triggers loss of income

28
Q

What are advanced loss of profits and delay in start-up insurance?

A

Loss of profit and debt servicing for having to pay overtime can be insured against in all types of construction projects to protect against significant financial loss for missing deadlines

29
Q

What are bloodstock and livestock?

A

bloodstock is horses etc
livestock is cows, sheep etc

Insurance generally about death or illness but can extend to infertility etc

30
Q

What is contingency insurance?

A

Covers things like:

  • event cancellation
  • weather-related instances
  • prize indemnity
  • death and disgrace
  • over-redemption
31
Q

What insurances can be written under personal accident insurance?

A
  • personal accident (benefit policy for things like sports people who lose income if they get injured)
  • personal illness, triggered by accident or injury
  • death in service, generally purchased by employers who would have to pay death in service to family
32
Q

What are the key parts of kidnap and ransom insurance?

A
  • payment of ransom
  • provision of negotiation specialist team to assist insured family during incident
  • payment of medical expenses for captured person once released
33
Q

What is product tamper, extortion, and product recall insurance?

A

Insurance pays for helping to removed potentially affected items, replace stock, and maintain reputation

Also helps pay if demands for money by extortion over incident

34
Q

What does intellectual property insurance cover primarily?

A

Covers legal costs of defending an action against your intellectual property

35
Q

What do insurers need to be wary of about physical damage in aviation policies?

A

Physical damage affects different aircraft differently, need to know use and area operating as well

Do not respond to wear and tear damage

36
Q

What liabilities relate to aviation?

A
  • injury to passengers whilst boarding, disembarking or on plane
  • third parties like baggage handlers
  • product related
  • El covered normally, not required to have separate aviation related policy
37
Q

What is loss of license / use insurance?

A
  • loss of use is aviation version of BI

- loss of license occurs if pilot fails medical etc but has to prove it is not their fault

38
Q

What liabilities do airport operators face?

A
  • premises liability (PL essentially)
  • products (if supplying fuel)
  • hangar-keepers, provides maintenance and storage services for clients
39
Q

What is reinsurance?

A

Insurance for insurers who want to transfer some of their own risk to other insurers

40
Q

What are different ways reinsurance can be written?

A
  • single risk
  • certain class of business
  • insurer’s portfolio
  • catastrophe losses
41
Q

What is the purpose of reinsurance?

A

Purely business decision but looked upon well by regulators

Need to make sure inequality below satisfied:
inward premium >= claims + reinsurance cost + operating costs

42
Q

What are the benefits of reinsurance?

A
  • increases capacity by reducing gross direct exposure

- smooths out peaks and troughs

43
Q

What are the benefits of writing reinsurance?

A
  • access different geographies

- access different classes of business

44
Q

Who generally sells reinsurance?

A
  • specialist companies that write no direct insurance
  • Lloyd’s syndicates
  • insurers who also write direct insurance
45
Q

Who generally buys reinsurance?

A
  • insurers
  • reinsurers
  • captives
  • mutuals
46
Q

Define to cede

A

share risk with reinsurers

47
Q

Define cedant

A

original insurer passing risk to reinsurers

48
Q

Define cession

A

share of risk passed to reinsurers

49
Q

Define collecting note

A

Document to present claim to reinsurers

50
Q

Define facultative reinsurance

A

reinsurance purchased for single risk

51
Q

Define non-proportional reinsurance

A

Premium and claims do not have direct correlation, relates to direct insurance such as excess of loss

Pays out over a certain threshold

52
Q

Proportional reinsurance

A

Proportion of premiums and claims split between insurer and reinsurer

53
Q

Define retrocedant

A

Reinsurer buying reinsurance for itself

54
Q

Define retrocession

A

Entity seeding is a reinsurer

55
Q

Define retrocessionaire

A

Reinsurer accepting reinsurance from an entity that is a reinsurer

56
Q

Define treaty reinsurance

A

Reinsurance for wide portfolio of risks, such as a companies whole portfolio or class of business

CII LM1 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions