Other Types of Casualty Insurance

Question 1

What is another name for umbrella liability?

Answer 1

Catastrophe Insurance

Question 2

Retained limits that the insured must satisfy before the umbrella policy will respond to certain kinds of losses defines _____________________ retention.

Answer 2

Self-insured retention

Comes into play only for losses that are not covered by any underlying insurance.

Question 3

The following describes what kind of liability coverage?
Individuals who provide professional services to others for a fee.
Protects them against legal liability that can result from negligence, errors and omissions. and the rendering or failure to render professional service.

Answer 3

Professional Liability

Question 4

Who are the parties to a bond?

Answer 4

Principal (or obligor)
Obligee (or insured)
Guarantor (or surety)

Question 5

What is the difference between contract and judicial bonds?

Answer 5

Contract bonds: guarantee performance of a written contract.

Judicial bonds: required because of legal or fiduciary obligations.

Question 6

Guarantee that the laws and regulations of a particular profession are followed is the purpose of:

Answer 6

License and permit bonds

Question 7

What is the difference between appeal bonds and bail bonds?

Answer 7

Appeal bonds may be required to guarantee that the judgment will be paid.
Bail bonds guarantee that a person will appear in court when specified.