Other Coverages and Options Flashcards
What is sometimes called catastrophe insurance?
Umbrella Policy
___ coverage provides extra protection against liability, and excess amount of insurance above the primary policy.
Umbrella Policy
What is the minimum in additional coverage an umbrella policy is commonly written to provide?
$1,000,000
___ crucial in providing comprehensive protection for individuals and business due to the escalating suits and judgements being handed down in courts.
Umbrella Policy
___ usually has a broader coverage and may cover some circumstances not covered by the underlying policies.
Umbrella Policy
What does personal umbrella policies provide excess coverage over?
Personal Liability
Auto Liability
What does commercial umbrella policies provide excess coverage over?
General Liability
Business Auto Liability
Errors & Omissions
Professional Liability
___ coverage protects insurances agents and brokers from financial losses they may suffer if an insured sues to recover their financial loss due to the agent giving incorrect advice or not informing them of important issues.
Errors & Omissions
___ is needed by individuals who provide services to others for a fee.
Professional Liability Coverage
___ covers individuals who administer pension or employee benefit plans, trusts, or estates.
Fiduciary Liability
___ covers the risks that bars and restaurants have from selling or serving alcoholic beverages.
Liquor Liability
___ bought by a company and are generally a guarantee that an employee or other particular person will not commit a dishonest or an act not in accordance with the expectations of his positions.
Fidelity Bonds
___ guarantee specific duties or obligations will be fulfilled.
Surety bond
___ person who promises to fulfill an obligation and purchase the bond.
Principle, Obligor
___ person to whom the promise was made and to whom the bond is payable.
Insured, Obligee
___ the company that provides the financial backing and will pay the penalty if the obligation is not fulfilled.
Surety, Grantor
___ guarantee performance of a written contract and are primarily used in construction contracts.
Contract Bonds
___ guarantee that the contractor that borrowed money to complete the construction project will finish it free and clear of any liens.
Completion Bonds
___ guarantee that the job will be completed according to the contract dates and specifications.
Performance Bonds
___ guarantee that if the contractors bid is the lowest bid and accepted, the contractor will sign a contract at that price.
Bid Bond
___ guarantee any bills for labor and materials will be paid by the contractor when due.
Payment Bonds
___ guarantee that the supplier will provide the agreed supplies or equipment at the agreed price and time.
Supply Bond
___ guarantee that a principal will fulfill an obligation created by law (includes fiduciary and court bonds).
Judicial Bonds
___ are asked from principals to protect obligee’s from loss if the principal was not legally entitled to receive the remedy they asked for such as a writ of seizure or a cease-and-desist order.
Court Bonds
___ usually required by state and local governments to guarantee that the laws of a profession are followed by someone receiving a government license.
License & Permit Bonds
___ required by law for some government offices to guarantee that public officials will handle their duties and public money honestly.
Public Official Bonds
___ covers all parts of the aircraft itself except for personal effects of people.
Aircraft Hull
What does Hull aircraft cover?
In the air and on the ground only; not in motion.
In Ocean Marine Insurance, what is a voyage called?
An adventure
In Ocean Marine Insurance, what is a loss occurrence called?
Misfortune
___ throwing cargo overboard to prevent further loss of property or life.
Jettison
___ conducting of illegal acts by the master or crew against the ship or the cargo including hijacking, embezzlement, or abandonment.
Barratry
What is Jettison referred to as?
General Average Loss
___ is a partial loss that only concerns the owners of the cargo that was lost.
Particular Average Loss
___ for physical damage coverage for loss to the ship itself.
Hull insurance
___ Covers what the ship is hauling.
Cargo insurance
___ the ship is the container
Bulk commodities
___ rolls of wire, steel, and other things that must be loaded individually.
Break-bulk cargo
___ packed in 20 ft. or 40ft. containers that can also be moved by truck or rail.
Containerization
___ used for motor vehicles to load from ship to shore by ramp.
Roll on/ roll off
___ the cost to repair and/ or recover exceeds the policy limit.
Constructive loss
___ defined as when property ceases to be a thing of the kind insured and is payable as a total loss.
Loss of Specie
___ is written by federal government to cover damage to property due to flooding because the private insurance industry would not.
National Flood Insurance Program
___ coverage applies to craft operated on an inland body of water and coastal water up to a limit of 10 to 25 miles.
Navigation & Territorial Definitions
___ supplements a named perils property policy often written to cover the different conditions of flood or earthquake coverage.
A Difference in Conditions Policy
___ was established to provide adequate fire, vandalism & homeowners insurance coverage necessary to the economic welfare of the state, including the coastal areas.
Coastal Plan & FAIR ( Fair Access to Insurance Requirements) Plan
