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

Question 1

Define ‘marine insurance’

Answer 1

Has some connection with the sea

Question 2

What are unusual historic practices in marine insurance?

Answer 2

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

Question 3

What are types of marine insurance?

Answer 3

Hull and yacht/recreational vessel insurance

Question 4

Is marine insurance short-tail or long tail?

Answer 4

short tail

Question 5

Define ‘short-tail insurance’

Answer 5

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

Question 6

Define ‘builders risk insurance’

Answer 6

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

Question 7

Define ‘loss of earnings insurance’

Answer 7

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

Question 8

Define ‘cargo insurance’

Answer 8

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

Question 9

What does stock throughput insurance cover?

Answer 9

Cargo in transit AND when it is in stock

Question 10

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

Answer 10

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

Question 11

What is jeweller’s block insurance?

Answer 11

A physical loss insurance for jewellery

Question 12

What is specie insurance?

Answer 12

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

Question 13

Define ‘goods in transit insurance’

Answer 13

Covering the liability of goods in transit

Question 14

Define ‘long-tail insurance’

Answer 14

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

Question 15

Define ‘political risks insurance’

Answer 15

A safety net against policy decisions by certain governments

Question 16

What is upstream vs downstream energy?

Answer 16

Upstream is typically offshore (extraction) downstream is onshore

Question 17

Define ‘non-marine insurance’

Answer 17

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

Question 18

Define ‘property insurance’

Answer 18

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

Question 19

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

Answer 19

They can be indemnified through reinstatement

Question 20

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

Answer 20

Stock insurance, theft insurance, glass insurance

Question 21

What is pecuniary insurance?

Answer 21

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

Question 22

Define ‘contractors all risks (CAR) insurance’

Answer 22

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

Question 23

Define ‘erection all risks (EAR) insurance’

Answer 23

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

Question 24

Define ‘business interruption insurance’

Answer 24

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

Question 25

What is contingent business interruption?

Answer 25

a policy which requires evidence between a damaged external party and business shut down (like your supplier running dry)

Question 26

Define ‘advanced loss of profits’ insurance

Answer 26

For construction, if a project is delayed

Question 27

Define ‘delay in start-up (DSU) insurance’

Answer 27

For construction, if start up is delayed

Question 28

Define ‘employers liability’

Answer 28

Compulsory insurance for employers, if employees are hurt on site

Question 29

Define ‘public liability’

Answer 29

Covers any party liable for loss or damage caused to members of the public

Question 30

Define ‘professional liability’

Answer 30

covers professionals, in case there is a breach of their duty

Question 31

Define ‘products liability’

Answer 31

Liability for a product that may accidentally cause harm- can be bought by anyone involved in the supply chain

Question 32

Define ‘bloodstock and livestock insurance’

Answer 32

Insurance for animals used to do business, such as horses or cattle, sheep, etc

Question 33

What are examples of contingency insurance?

Answer 33

event cnacellation, weather related isnurance, prize indemnity, death and disgrace, over redemption

Question 34

Define ‘personal accident insurance’

Answer 34

A benefit policy triggered by a personal accident

Question 35

Define ‘personal illness or sickness insurance’

Answer 35

Triggered by sickness or illness, protects against being unable to work

Question 36

Define ‘aviation insurance’

Answer 36

Insurance related to aircrafts

Question 37

What does physical damage insurance for aircrafts cover?

Answer 37

Their physical damage

Question 38

What other types of aviation insurance is there?

Answer 38

Aviation liabilities, loss of license, loss of use insurance

Question 39

Define ‘reinsurance’

Answer 39

When an insurer buys insurance to cede out its risks

Question 40

Define ‘mutuals’

Answer 40

Like minded insurers pooling together anf forming a pool amongst themselves