Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

LM1 > LO3: Understanding the main classes of insurance written in the London Market > Flashcards

LO3: Understanding the main classes of insurance written in the London Market Flashcards

1
Q

marine insurance

A

covers things with some relation to the sea but its not always obvious

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

honor policy

A

can be lack of clarity surrounding the insurable interest or value of the item being insured for marine. this is the name for such a policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

policy proof of interest

A

the existence of the policy can be used as proof of the insurable interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

commercial vessel insurance covers (examples)

A

cargo
cruise/passenger vessel (holiday vessels abd ferries that carry people and vehicles)
specialist vessel (cable layers, drilling ships, ect.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

vessels

A

sailing (racing to cruises holidays to owner operated)
motor (super vessels to owner operated)
inland (canal boats)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

marine hull insurance

A

covers damage to the ship
- loss/damage type of insurance
- categorised as first party insurance or short tail insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

tail of insurance
- short (examples)
- long

A

lag between the insurance incepting and the closure of any claims

short: claim notification is quick and usually finalised quickly
- loss damage policies for hull and propery
long: large lag between the insurance period and the closure of claims related to it
- third party liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

particular average

A

special term to describe physical damage to the insureds property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

in the event of a collision

A
  • each party pays for the others damage in proportion to their fault
  • they can then claim back from the hull insurance for collision liabilities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

builders risk insurance

A
  • combined physical damage and liability cover
  • insured can be the eventual owner or the owner and the building yard
  • accounts for the length of time and the increasing value of the ship over that time
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

loss of earnings insurance

A
  • doesnt cover pure business risks (no work)
  • usually requires some physical damage to the vessel
  • policy limit/deductible often expressed in days along with maximum payable per day
  • separate from business interruption insurance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

cargo insurance

A

physical damage insurance for the item being moved around, not standard to include liability for its damage to the transportation vehicle

  • 90-95%of transit done by sea
  • covers journerys by road, rail and air as well
  • doesnt anticipate insuring storage type risks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

goods in transit insurance

A

primarily liability insurance for the person/company moving the cargo, for their own property but mainly for the cargo

includes releasing the cargo to the wrong party at port

doesnt ususlly include sea carriers

insurer questions
- whats the nature of the insured business?
- what controls are needed?
- does the insured have their own fleet, is it well maintained

can be written by marine or nonmarine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

stock throughput insurance

A
  • end to end product
  • combines transit and storage policies (no gaps in coverage)
  • written by marine
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

jewellers block insurance
- exclusions
- written by?

A

package policy that covers many aspects of the business
- manufacture
- trade shows
- exhibitions
- retail

physical damage/loss type insurance but excludes mysterious disappearances and inventory losses

written by marine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

specie insurance

A

covers
- loose gemstones
- precious metals
- valuable documents (covers cost of reconstruction)

damage/loss cover

written by marine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

fine art insurance
- covers
- payouts for…
- insureds

A

covers
- paintings
- sculptors
- installations ( light/sound)

physical loss/damage insurance, static and in transit

pays for repair and/or the loss of value due to the damage

insured: museums, private collectors

written by marine and nonmarine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

satellite prelaunch insurance

A

covers physical loss/damage until the launch insurer takes over, when the engines initially ignite

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

cash in transit insurance
- risk prevention measures

A

written by marine and nonmarine covering the movement of money between locations

key risk prevention measures
- varying routes
- mixing up truck crew to avoid inside jobs
- armed truck crew
- gps on trucks
- not leaving vehicle unattended
- safety measure to soak/dye money if someone tries to break in

20
Q

war and strike insurance

A
  • can include terror
  • fairly available in the marine london market
21
Q

war insurance

A

cover
- war
- civil war
- captures
- seizes
- damage due to abandoned mines and similar ancient weapons

usually excludes piracy

22
Q

stike insurances

A

strikes and damage caused by terrorist (those acting for political/religious motives)

23
Q

marine third party liability
- examples
- also bought by

A

examples:
injury or death of crew
injury/death of visitor on board
pollution
damage to cargo
damage to others property through collisions (docks, lighthouses)
removing wreck after crash
using a hired vehicle

bought by:
vessel owners
vessel operators
port authorities
shipbuilders/repairers
marina owners

24
Q

political risks insurance
- aims
- included
- alternatives

A

aims to create a more stable environment for investment into developing markets

manage risks arising from the (in)actions or restriction imposed by hostile/unconstitutional governments

includes:
- CEND (confiscation, expropriation, natailisation and deprivation)
- ccp (cental counterparty)
- construction frustration
- war on land

alternatives
- spreading of risk amongst competitors
- state funded export credit scheme

25
Q

offshore energy insurance

A

related to oil and gas extraction (upstream)

covers:
exploration phases
construction phases
operational phases

26
Q

property insurance
- examples
- can cover ?

A

office building
industrial buildings
pubic buildings
retail units
agricultural buildings
domestic buildings

covers
- damage
- machinery
- fixtures and fittings
- raw materials before processing
- finished product before dispatch

27
Q

resintatement

A

available for property but not for marine, means the reconstruction of the property therefore the sum insured should be enough to cover the project with the time kept in mind

28
Q

stock insurance

A

covers stock on the insured premises, regular reports of the stock level are made to the insurer

29
Q

theft insurance

A

requires forced entry

30
Q

glass insurance

A

covers the boarding up of the property

31
Q

pecuniary insurances

A

cover monetary losses rather than physical damages

includes:
- money insurance (includes valuable docs)
- fidelity guarantee insurance (fraudulent acts)
- business interruption

32
Q

construction insurance

A

usually has multiple parties as the insured

can extend into the maintenance period of the structure (after the hand off) to let snagging element be worked out

types (both combinations of physical damage and liability covers):
- contractor all risks (bought by the main contractor on behalf of all the others)
- erection all risks (bought by the contractor responsible for putting up/installing machinery)

33
Q

onshore energy

A

applies to the midstream and downstream (after the oil/gas is extractd), and mining power stations and renewables

midstream = pipelines
downstream = refining and processing

34
Q

cyber insurance
- definition
- issues
- covers

A

covers risks related to losses due to use of networks to access online systems and information

issues:
- professional indemnity
- network security failures
- privacy breaches

cover:
- bi
- reputation protection (liasing with customers)
payment of ransom
- practical support
- physical damage
- regulatory investigations

35
Q

business interruption insurance
- subclasses

A

replaces lost income after a waiting period
requires loss/damage tot he insured property unless contingent bi (damage to an external party) is included

subclassess
- advanced loss of profits
- delay in startup

36
Q

casualty
- aka
- examples

A

nonmarine liabilities

examples:
- employers liability
- public liability
- professional liability (claims against for incorrect advice or negligent activity)
- motor liability
- general liability
- product liability

37
Q

bloodstock and livestock insurance

A

for animals (mainly death and illness) used in business
- bloodstock = competitive horses (basic cover can be extended to include infertility)
- livestock = all others

38
Q

contingency insurance examples

A

event cancellation
weather-related insurance
prize indemnity
death and disgrace (reshooting of campaign)
over-redemption (offers and promotions)

39
Q

personal accident insurance examples

A

personal accident
personal illness/sickness
death in service

40
Q

kidnap and ransom insurance

A
  • kidnappers demand money
  • can also be written in marine with regards to pirates

covers
- medical expenses
- payment of ransom
- providing negotiation team

41
Q

malicious product tamper, extortion, and product recall insurance

A

extorters demands money for information or for silence

doesnt mean there is any loss or damage, insured must take action to protect reputation

42
Q

intellectual property inurance

A

ip = company/individuals rights to their creation/invesntion

covers the cost of suing/ being sued

43
Q

aviation physical damage insurance
- aircrafts

A

private pleasure fixed wing (jet or propellers, stages of interest: take off, flight, landing)
commercial fixed wing
rotary aircraft
gliders (no independent means of propulsion)
mircolights (hang-gliders with small engine)
hot air ballons
drones (unmanned)

44
Q

aviation liabilities

A

passengers
third parties other than passengers
product realted

45
Q

loss of use insurance

A

like marine loss of earnings or property bi

46
Q

loss of license insurance

A

for individuals (air crew and traffic controllers) that have failed medicals, not their fault

will replace personal income

47
Q

airport operator policies

A

combine physical damage and liability

  • premises liability
  • products liability
  • hangar-keepers liability (maintenance and storage services, not just a hangar)

LM1 (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions