M81 - Chapter 7 Programme Design & Operation Flashcards

1
Q

When might a broker advise a Commercial client to break a 3 or 5 year renewal cycle?

A

Significant change in Insurance Market

Excessive change in terms at Renewal

Change in clients business activities

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2
Q

In Global Insurance Programmes - What is a ‘DIC’

A

Differences in conditions policy - Is referred to as the ‘Global Master Policy’

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3
Q

What is an admitted policy?

A

Admitted - Can settle claims in the country is was created and outside those counties / Defend the insured.

Non-Admitted - Can settle claims only in the country it was issued.

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4
Q

What do ‘Differences in cover’ and ‘Differences in liability’ master policies do.

A
  1. Top up cover to the same level as the master policy, where the local ‘admitted’ policy falls short. EG Local taxes reduce settlement.
  2. ‘Step down’ and provide cover where the local policy does not include the insured peril. EG Doesn’t include accidental damage.
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5
Q

3 Factors to consider that effect Currency conversions in setting up cover and paying claims?

A

Inflation / Fluctuations - Often claims are paid in ‘hard currency’ EG US Dollar

Convertibility - Some countries currency is not worth much outside of their country.

Variable Exchange rates - Many policies operate on a pre-set rate

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6
Q

What to consider when setting up an insurance programme

6

A

Risk retention by the Insured

Packages & Combined Policies

Programme term (how long)

Limits

Specialist cover required

Which Insurers are available

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