Chapter 3: Main classes of business writtem in the London Market Flashcards
Define ‘marine insurance’
Has some connection with the sea
What are unusual historic practices in marine insurance?
They cover syuff which isn’t immediately connected with the sea, and they can insure things where the person’s insurable interest is not entirely clear
What are types of marine insurance?
Hull and yacht/recreational vessel insurance
Is marine insurance short-tail or long tail?
short tail
Define ‘short-tail insurance’
Business with a short time lag between policy inception and final closure of claim
Define ‘builders risk insurance’
Combined physical and liability cover for the buyer and builder of ships
Define ‘loss of earnings insurance’
Tends to be specific to marine, but is essentially when there is physical damage and a ship cannot earn (BI in non-marine)
Define ‘cargo insurance’
Covers physical damage to the goods whilst they are on their journey
What does stock throughput insurance cover?
Cargo in transit AND when it is in stock
What is the difference between cargo insurance and goods in transit insurance?
Cargo is about the items being moved round, whilst goods in transit is liability for the people moving things around
What is jeweller’s block insurance?
A physical loss insurance for jewellery
What is specie insurance?
Covers physical loss or damage for gemstones, precious metals, or valuable documents
Define ‘goods in transit insurance’
Covering the liability of goods in transit
Define ‘long-tail insurance’
Insurance with a long gap between the policy inception and when claims made on the policy are resolved
Define ‘political risks insurance’
A safety net against policy decisions by certain governments
What is upstream vs downstream energy?
Upstream is typically offshore (extraction) downstream is onshore
Define ‘non-marine insurance’
Not related to the sea. SOme things can be marine and non-marine
Define ‘property insurance’
Physical damage insurance for a variety of buildings, which can cover their contenst too
How is the indemnification of property insurance different to marine insurance?
They can be indemnified through reinstatement
What are other types of property insurance to be aware of?
Stock insurance, theft insurance, glass insurance
What is pecuniary insurance?
Insurance related to money- like money insurance or fidelity guarantee insurance
Define ‘contractors all risks (CAR) insurance’
A policy that covers physical damage and liability cover, usually purchased by the main contractor on behalf of subcontractors
Define ‘erection all risks (EAR) insurance’
A combination of physical damage and liability cover, purchased by a contractor erecting things
Define ‘business interruption insurance’
Protects against loss of earning s(kicks in after a waiting period)
What is contingent business interruption?
a policy which requires evidence between a damaged external party and business shut down (like your supplier running dry)
Define ‘advanced loss of profits’ insurance
For construction, if a project is delayed
Define ‘delay in start-up (DSU) insurance’
For construction, if start up is delayed
Define ‘employers liability’
Compulsory insurance for employers, if employees are hurt on site
Define ‘public liability’
Covers any party liable for loss or damage caused to members of the public
Define ‘professional liability’
covers professionals, in case there is a breach of their duty
Define ‘products liability’
Liability for a product that may accidentally cause harm- can be bought by anyone involved in the supply chain
Define ‘bloodstock and livestock insurance’
Insurance for animals used to do business, such as horses or cattle, sheep, etc
What are examples of contingency insurance?
event cnacellation, weather related isnurance, prize indemnity, death and disgrace, over redemption
Define ‘personal accident insurance’
A benefit policy triggered by a personal accident
Define ‘personal illness or sickness insurance’
Triggered by sickness or illness, protects against being unable to work
Define ‘aviation insurance’
Insurance related to aircrafts
What does physical damage insurance for aircrafts cover?
Their physical damage
What other types of aviation insurance is there?
Aviation liabilities, loss of license, loss of use insurance
Define ‘reinsurance’
When an insurer buys insurance to cede out its risks
Define ‘mutuals’
Like minded insurers pooling together anf forming a pool amongst themselves
