Chapter 3 Main classes of business written in the London Market

Question 1

What insurance policy pays benefits in the event of an accident

Answer 1

Personal accident

Question 2

What policy indemnifies a shop for compensation and legal costs they incur if a customer is injured in a shop and sues them

Answer 2

Public liability

Question 3

What policy covers loss or damage caused by theft

Answer 3

Theft

Question 4

What is liability insurance? - list 5 types

Answer 4

The insurance of legal liability to pay compensation and costs awarded against the insured in favour of another party.

1. Employers liability
2. Public liability
3. Products liability
4. Professional Indemnity
5. Management Liability

Question 5

What are the main areas Marine insurance covers?

Answer 5

Marine cargo (Physical damage to cargo)
Marine Hull (Physical damage to ship)
Loss of income (Loss of hire or freight or passage money
Marine liabilities (liabilities to passengers, crew and other ships - often insured with mutual P&I clubs)

Question 6

What policy indemnifies an employer for compensation and legal costs they incur if an employee injured at work sues them?

Answer 6

Employers liability

Question 7

What pecuniary policy will protect their business in the event of one of their customers not paying a debt for good or services they have been supplied with

Answer 7

Credit insurance

Question 8

What pecuniary policy indemnifies a company if a change in political conditions or revolution cause them a loss

Answer 8

Political risks

Question 9

What policy indemnifies directors for compensation and legal costs they incur if they are negligent or breach their statutory duties whilst running a company

Answer 9

Directors and officers liability

Question 10

What policy covers the risk of fire damage to a factory

Answer 10

Fire or “all risks “ insurance

Question 11

What are the main areas aviation insurance covers?

Answer 11

Hull (physical damage to aircraft)
Liability (passengers)
Satellites

Question 12

What policy indemnifies a profession for compensation and legal costs they incur if a customer alleges they have suffered injury or loss as a result of their advice

Answer 12

Professional indemnity

Question 13

What policy indemnifies a manufacturer for compensation and legal costs they incur if a customer sues them who has been injured by their product?

Answer 13

Products liability

Question 14

What policy covers death, theft or unexplained diappearance of horses and cattle

Answer 14

Livestock (Bloodstock for horses)

Question 15

What pecuniary policy covers a business’ loss of profit if they can no trade due to a fire.

Answer 15

Business interruption

Question 16

What pecuniary policy indemnifies a company if one of their employees defrauds the company of money

Answer 16

Fidelity guarantee