Chapter 8 - General insurance products Flashcards
Outline the seven features of liability insurance
- Provides indemnity where the insured, due to some form of negligence, is legally liable to pay compensation to some third party
- The legal fees associated with the claim are usually also covered
- Illegal acts of negligence will invalidate the claim and no payment will be made by the insurer
- There may be an upper limit and/or excess amount applied to the claim
- On the occurrence of a claim the cover may be cancelled, or a reinstatement premium or higher premium might be required for the cover to continue
- The claims are usually medium to long tailed and are likely to be real in nature
- International or national laws apply, depending on the type of cover
List the four generic groups of general insurance products
- Liability
- Property damage
- Financial loss
- Fixed benefit
List the products covered under Liability Insurance
- Employer’s
- Motor third party
- Public
- Product
- Professional indemnity
List the products covered under Property Damage Insurance
MR CALM
- Movable products
- Residential buildings
- Commercial buildings
- Aircraft
- Land vehicles
- Marine craft
List the products covered under Financial Loss Insurance
- Pecuniary loss
- Fidelity guarantee
- Business interruption
- Cyber security
List the products covered under Fixed Benefit Insurance
- Personal accident
- Health
- Unemployment
List the perils covered by employer’s liability insurance
- Accidents caused by negligent actions by the employer
- Exposure to harmful substances
- Exposure to harmful working conditions
List the perils covered by motor third party liability insurance
- Motor accidents caused by the insured
List the perils covered by product liability insurance
- Faulty product design, manufacturing or packaging
- Misleading or incorrect instructions
List the perils covered by buildings insurance
LEFT SF
- Lightning
- Explosion
- Fire
- Theft
- Storm
- Flood
List the perils covered by marine hull cover
- Perils of the sea
- Fire
- Explosion
- Jettison
- Piracy
List the perils covered by pecuniary loss insurance
- Bad debts
- Third party failure
List the perils covered by fidelity guarantee insurance
- Dishonest employee actions
- Fraud
- Embezzlement
List the perils covered by business interruption insurance
- Being unable to conduct business
What is liability insurance?
Provides indemnity where the insured, owing to some form of negligence, is legally liable to pay compensation to a third party. Any legal expenses relating to such liability are usually also covered. An illegal act of negligence will often invalidate the cover
What is employers’ liability?
This insurance indemnifies the insured against the legal liability to compensate an employee or their estate for accidental bodily injury, disease or death suffered, owing to the negligence of the employer, in the course of employment
perils also include exposure to harmful substances or harmful working conditions
What is motor third party liability?
indemnifies the owner of a motor vehicle against compensation payable to third parties for death, personal injury or damage to their property.
What is public liability?
indemnified against legal liability for the death of, or bodily imjury to, a third party or for damage to property belonging to a third party, other than those liabilities covered by other liabliity insurance
What is product liability?
it indemnifies the insured against legal liability for the death of, or bodily injury to, a third party or for damage to property belonging to a third party, which results from a product fault
What is professional indemnity?
the insured is indemnified against legal liability resulting from negligence in the provision of a service
