Main Class Of Insurance Written (Chapt 3)

Question 1

Marine insurance - what are Honour policies?

Answer 1

Writing insurance where the purchasers insurable interest is not entirely clear.
Policy Proof of Interest

Question 2

What does Yacht insurance cover?

Answer 2

The following types of vessels
Sailing
Motor
Inland

Question 3

What does Commercial Vessel Insurance cover?

Answer 3

These type of vessels
Cargo
Cruise/passenger
Specialist

Question 4

What is the key common element covered by any type of marine hull insurance?

Answer 4

First party insurance
(Damage to the insured ship - physical loss or damage)

Physical damage caused to property is known as ‘Particular Average’ in Marine.

Most policy wording also provide cover for liabilities arising under maritime law (vessel collided with another vessel)

Question 5

How is Builders Risk insurance used in Marine?

Answer 5

Construction of vessel - expensive & lengthy.

Combined physical damage & liability cover

Question 6

When might Loss of earnings insurance be used in Marine?

Answer 6

If shipowner can’t use ship because it is damaged and can’t earn money from it carrying passengers, cargo, or hiring it out.

I’m non-marine normally referred to as BI.

Waiting period of days before they can claim. Policy limit expressed as a period of days.

Financial provisions calculated using insurers business info such as wages bill or rent

Question 7

Difference between cargo and goods in transit

Answer 7

Cargo = physical damage for goods being moved around

Goods in transit = liability for the entity moving items around, invade they damage goods in their care

Question 8

What does Cargo insurance not cover that hull insurance for ships would?

Answer 8

Liabilities for cargo damaging persons on their property

Question 9

Cargo insurers do not anticipate insuring storage as this would be static - what insurance would be used for this?

Answer 9

Stock throughput insurance

Question 10

Stock throughput insurance

Answer 10

End-to-end
Combines transit and storage policies
Removes danger of gaps in cover

Question 11

Jewellers block insurance

Answer 11

Covers jewellery trade
Introduced into Lloyd’s by Cuthbert Heath 19th century
Package policy covering property and liability risks
Physical loss or damage
Excluded - mysterious disappearance, inventory losses

Question 12

Specie insurance

Answer 12

Loose gemstones
Precious metals
Valuable documents

Physical loss or damage

Question 13

Fine art insurance

Answer 13

Paintings
Sculptures
Installations

Physical loss or damage

Question 14

Satellite pre launch insurance

Answer 14

Moving satellite to launch pad
Cargo covers for physical loss or damage until launch insurer takes over when engines are ignited.
Aggregation is an issue where several satellites launched at once

Question 15

Cash in Transit insurance

Answer 15

Movement of money between locations
Head office to local branch
Bank to ATM
Company premises to bank
Risk prevention includes:
- varying routes
- mixing up truck crews
- armed truck crews
- paper money soaked in dyes
- GPS

Question 16

Goods in transit insurance

Answer 16

Covers liability of the carrier
Does not cover sea carriers
Covers loss or damage to goods, releasing cargo to wrong party

Question 17

Parties in insurance
First party
Second party
Third party

Answer 17

First party = insured
Second party = insurer
Third party = anyone else

Question 18

War and strikes insurance

Answer 18

Covers war and civil war risks
Captures and seizures
Damage caused by abandoned mines
Piracy not covered - covered in hull and also cargo

Question 19

Why is War and Strikes insurance freely available?

Answer 19

Marine risks expected to be mobile and able to move out of danger should it arise

Question 20

Strikes insurance covers…

Answer 20

Strikes and damage caused by terrorists or political/religious motives

Question 21

Types of marine related liability

Answer 21

injury/death of crew
injury/death of visitors
pollution caused by escape of cargo etc
damage to cargo
damage to other people’s property

Question 22

Parties who should consider liability insurance

Answer 22

-port authorities
-shipbuilders/ ship repairers
-marina owners

Liability for land-based employees covered by non-marine employers liability

Question 23

Political risks insurance (PRI)

Answer 23

Allows investors and businesses to mitigate risk arising from restriction imposed by government actions

Offers trade finance banks realistic alternative to syndicating exposure to direct competitors

Alternative for exporters to using state-funded Export Credit Schemes

Question 24

What type of insurance covers the construction of ships?

Answer 24

Builders risk

Question 25

If you own a gallery and want to insure paintings and sculptures, which type of insurance do you need?

Answer 25

Fine art

Question 26

What precautions do ‘cash in transit’ insurers not expect their insured to take?

Answer 26

Only driving in daylight

Question 27

What type of risks does political risk insurance cover?

Answer 27

Assets being seized by authorities

Question 28

If a business wants to insure against employees stealing money from it, which type of insurance is suitable?

Answer 28

Fidelity guarantee

Question 29

What does a typical business interruption policy cover?

Answer 29

Loss of income following physical damage to a factory

Question 30

Which type of insurance would it be sensible for businesses as diverse as shops and nightclubs to buy?

Answer 30

Public liability

Question 31

How is personal accident different from other types of insurance?

Answer 31

It is a benefit policy, not an indemnity policy

Question 32

What is not a standard aviation-related liability?

Answer 32

Professional negligence

Question 33

If an insurer is buying ‘whole account’ reinsurance, what are they protecting?

Answer 33

All the risks written by the insurer