Chapter 3: Main classes of business writtem in the London Market Flashcards

1
Q

Define ‘marine insurance’

A

Has some connection with the sea

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2
Q

What are unusual historic practices in marine insurance?

A

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

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3
Q

What are types of marine insurance?

A

Hull and yacht/recreational vessel insurance

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4
Q

Is marine insurance short-tail or long tail?

A

short tail

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5
Q

Define ‘short-tail insurance’

A

Business with a short time lag between policy inception and final closure of claim

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6
Q

Define ‘builders risk insurance’

A

Combined physical and liability cover for the buyer and builder of ships

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7
Q

Define ‘loss of earnings insurance’

A

Tends to be specific to marine, but is essentially when there is physical damage and a ship cannot earn (BI in non-marine)

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8
Q

Define ‘cargo insurance’

A

Covers physical damage to the goods whilst they are on their journey

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9
Q

What does stock throughput insurance cover?

A

Cargo in transit AND when it is in stock

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10
Q

What is the difference between cargo insurance and goods in transit insurance?

A

Cargo is about the items being moved round, whilst goods in transit is liability for the people moving things around

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11
Q

What is jeweller’s block insurance?

A

A physical loss insurance for jewellery

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12
Q

What is specie insurance?

A

Covers physical loss or damage for gemstones, precious metals, or valuable documents

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13
Q

Define ‘goods in transit insurance’

A

Covering the liability of goods in transit

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14
Q

Define ‘long-tail insurance’

A

Insurance with a long gap between the policy inception and when claims made on the policy are resolved

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15
Q

Define ‘political risks insurance’

A

A safety net against policy decisions by certain governments

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16
Q

What is upstream vs downstream energy?

A

Upstream is typically offshore (extraction) downstream is onshore

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17
Q

Define ‘non-marine insurance’

A

Not related to the sea. SOme things can be marine and non-marine

18
Q

Define ‘property insurance’

A

Physical damage insurance for a variety of buildings, which can cover their contenst too

19
Q

How is the indemnification of property insurance different to marine insurance?

A

They can be indemnified through reinstatement

20
Q

What are other types of property insurance to be aware of?

A

Stock insurance, theft insurance, glass insurance

21
Q

What is pecuniary insurance?

A

Insurance related to money- like money insurance or fidelity guarantee insurance

22
Q

Define ‘contractors all risks (CAR) insurance’

A

A policy that covers physical damage and liability cover, usually purchased by the main contractor on behalf of subcontractors

23
Q

Define ‘erection all risks (EAR) insurance’

A

A combination of physical damage and liability cover, purchased by a contractor erecting things

24
Q

Define ‘business interruption insurance’

A

Protects against loss of earning s(kicks in after a waiting period)

25
What is contingent business interruption?
a policy which requires evidence between a damaged external party and business shut down (like your supplier running dry)
26
Define 'advanced loss of profits' insurance
For construction, if a project is delayed
27
Define 'delay in start-up (DSU) insurance'
For construction, if start up is delayed
28
Define 'employers liability'
Compulsory insurance for employers, if employees are hurt on site
29
Define 'public liability'
Covers any party liable for loss or damage caused to members of the public
30
Define 'professional liability'
covers professionals, in case there is a breach of their duty
31
Define 'products liability'
Liability for a product that may accidentally cause harm- can be bought by anyone involved in the supply chain
32
Define 'bloodstock and livestock insurance'
Insurance for animals used to do business, such as horses or cattle, sheep, etc
33
What are examples of contingency insurance?
event cnacellation, weather related isnurance, prize indemnity, death and disgrace, over redemption
34
Define 'personal accident insurance'
A benefit policy triggered by a personal accident
35
Define 'personal illness or sickness insurance'
Triggered by sickness or illness, protects against being unable to work
36
Define 'aviation insurance'
Insurance related to aircrafts
37
What does physical damage insurance for aircrafts cover?
Their physical damage
38
What other types of aviation insurance is there?
Aviation liabilities, loss of license, loss of use insurance
39
Define 'reinsurance'
When an insurer buys insurance to cede out its risks
40
Define 'mutuals'
Like minded insurers pooling together anf forming a pool amongst themselves