Other Coverages And Options Flashcards
What type of professional liability coverage will a medical doctor need?
Medical malpractice coverage.
What is the name for the deductible in liability umbrella polices?
Self-insured retention (SIR)
What is the purpose of surety bonds?
To guarantee that specific duties and obligations of the principal will be fulfilled.
What is the purpose of the National Flood Insurance Program (NIFP)?
To fill the gap in flood insurance left by private insurers.
What are the parties to a surety bond?
The principal (or obliger), the obligee (or insured), and the guarantor (or surety).
Professional Liability coverage protects the insured against legal liability resulting from what?
Errors and omissions.
Where can National Flood Insurance be issued?
Only in participating, flood-prone areas.
What type of coverage do umbrella policies provide?
Excess coverage over the primary policy.
In surety bonds, who purchases the bond and promises to fulfill the obligation?
Principal or obligor.
What are residual markets?
Insurance markets designed to assume risks that are generally not insurable in the normal insurance market.
Medical malpractice, agents and brokers errors and omissions, and directors and officers liability are examples of what type of liability insurance?
Professional Liability.
When can insurance be sold through a surplus lines insurer?
When the insurance cannot be obtained through an authorized carrier.
What is the name for non-admitted insurers who are allowed to transact business in a state?
Surplus lines insurers.
What is the minimum amount of additional coverage provided by umbrella policies?
$1 million
A person or business that requires coverage for all liability exposure should purchase what type of insurance?
Commercial General Liability (CGL) and Professional Liability.
