Liability Products

Question 1

Employers Liability - Insured Perils

Answer 1

Accidents -> Negligence
Exposure to harmful substances
exposure to harmful working conditions

Question 2

Employers Liability- Measure of Exposure

Answer 2

payroll
year-end adjustments

Question 3

Employers Liability- Benefits

Answer 3

Injury, disease, death -> Medical costs + Loss of earnings
Loss or damage to property
regular or lump sum
legal costs
compulsory cover

Question 4

Employers Liability-Basis for cover

Answer 4

Loss occuring basis (even if probelmatic)
claims made basis less common

Question 5

Employers Liability Claims charactersitics

Answer 5

Reporting delays:
-> undetected for years + claims arising over years
Settlement delays :
-> establish liability (loss? insured liable? quantom of loss?
->time for condition to stabilise to establish extent of injury/disease
-> legal environment
Claim freq:
-> usually low
Claim amount:
-> wide distribution
-> risk of accumulations

Question 6

Employers Liability- Risk, Rating and UW factors

Answer 6

-type of industry
-claims experience
-location of workforce
-materials handled
-saftety procedures
-turnover/payroll

Question 7

Employers Liability- Who would buy cover

Answer 7

Employers

Question 8

Motor TP-Insured Perils

Answer 8

-loss or damage of 3rd party casued by insured while driving
-death or injury of 3rd party casued by insured while driving

Question 9

Motor TP-Measure of Exposure

Answer 9

Vehicle-year

Question 10

Motor TP- benefits

Answer 10

-Injury, death -> loss of earnings + medical expenses
-property damage
-pain and suffering
-regular or lump sum
-legal costs
-compulsory cover

Question 11

Motor TP- Basis for cover

Answer 11

loss occuring basis

Question 12

Motor TP- Claims Characteristics

Answer 12

Reporting delays:
->property damage: short
-> bodily injury: longer esb serious injury
Settlement delays:
-> establish liability (loss? insured liable? quantom of loss?)
-> time for condi to stabilise to establish extent of injury
-> legal environmment
Claim freq:
-> motor vehicle liaiblity claims most common esp property damage
Claim amount:
-> wide distribution (property much lower than bodily injury)

Question 13

Motor TP- Risk factors

Answer 13

mileage driven
traffic density where car is driven
driver ability/attitude
speed and general performance
cost of repairs
risk of theft

Question 14

Motor TP- Rating factors

Answer 14

excess level
use of vehicle
additional drivers
age, gender of drivers
occupation of drivers
make, model and age of vehicle
vehicle modifications
location of PH
whre vehicle is parked overnight
past experience
convictions

Question 15

Motor TP- Who would buy cover

Answer 15

owners of motor veichle (commercial or private)
Drivers (hired cars)
often compulsory (legislation)

Question 16

Liability insurance Marine and Aviation-Insured perils

Answer 16

loss or damage to passengers property (incl luggage)
injury or death of passengers
injury, death, property damage to others caused by vessel/craft
exclusions: (depending on legal environment)
-terrorism
-war
-illegal activities

Question 17

Liability insurance Marine and Aviation-Measure of exposure

Answer 17

Passenger-km/voyages
in-service seats/ vessels or crafts
turnover (practical, but not best risk measure) - should be averaged

Question 18

Liability insurance Marine and Aviation-benefits

Answer 18

-Injury, death -> loss of earnings + medical expenses
-property damage
-regular or lump sum
-legal costs
-includes passengers, but not limited to them

Question 19

Liability insurance Marine and Aviation-basis for cover

Answer 19

loss occuring basis

Question 20

Liability insurance Marine and Aviation-Claims Char

Answer 20

Reporting delays:
->property damage: short
-> bodily injury: longer esb serious injury
Settlement delays:
-> establish liability (loss? insured liable? quantom of loss?)
-> time for condi to stabilise to establish extent of injury
-> legal environmment
Claim freq:
-> should be low
Claim amount:
-> wide distribution (property can be large such as ships colliding)

Question 21

Liability insurance Marine and Aviation-Rating factors

Answer 21

excess level
loss history
type of craft/vessel
commercial category (commercial/private/millitary)
sattelites/missiles
use of craft/vessel (passenger/cargo/leasure/business)
geographic location

Question 22

Liability insurance Marine and Aviation-Who would buy

Answer 22

Aircraft and shipping operators and/or owners
Aircraft and shipping manufacturers (risk while testing, future malfunctioning)

Question 23

Public Liability- Insured perils

Answer 23

Depends on policy
may not be specifically listed
exclusion could be listed though

Question 24

Public Liability-Measure of exposure

Answer 24

payroll
turnover
other -> # hospital beds

Question 25

Public Liability-Benefits

Answer 25

Depends on type of policy- household vs commercial
Injury/death/disease -> medical costs + loss of earnings
loss or damage to property
regular or lump sum
legal costs
excl liability covered by other types of liability
may be compulsory
main types:
-insured’s own premises
-off-site liability

Question 26

Public Liability-Basis for cover

Answer 26

loss occuring but if addon then same as addon type (household)

Question 27

Public Liability-Claim Char

Answer 27

Reporting delays:
-> undetected for years + claims arising over years
Settlement delays :
-> establish liability (loss? insured liable? quantom of loss?
->time for condition to stabilise to establish extent of injury/disease
-> legal environment
Claim freq:
-> usually low
Claim amount:
-> wide distribution
-> smaller for property damage

Question 28

Public Liability-Risk, Rating and UW factors

Answer 28

type of industry/occupation
location, legal environment
materials handled
safety procedures

Question 29

Public Liability-Who would buy

Answer 29

Individuals and businesses
Hospitals
Usually packed within stadard policy (household building policy)

Question 30

Product Liability-Inusred Perils