Pecuniary Insurance

Question 1

Pecuniary

Answer 1

Relating to/involving monetary loss
Covers rights and interests of company not property
Different to property insurance as wealth is I tangible

Question 2

Money insurance

Answer 2

Generally offered to businesses
Limits based on amount of money in till at one time etc
Most susceptible to theft and fraud-strictest warranties and conditions

Question 3

Money all risks insurance

Answer 3

Covers money on premises, transport, in authorized home

Excludes loss by employees, errors, omissions

Question 4

Credit insurance

Answer 4

If debtor fails to meet obligations creditor can recoup losses

Bank financiare de la cite

Question 5

Guarantees

Answer 5

Insurer will pay if person holding bond won’t

Question 6

Performance bond

Answer 6

Bond issued as guarantee against failure of other party to meet obl in contract
Covers excess cost of finding somebody else
Construction contract

Question 7

Mortgage bond

Answer 7

1 off payment if you default insurance

Question 8

Fidelity guarantee

Answer 8

Covers theft by employees/with their connivance
Insured must prove on BOP
There was loss
It was stolen by employees

Question 9

Business interruption(consequential loss)

Answer 9

Covers against unforeseen risks causing money loss as result of insured peril 
Loss of profits from 
-reduction in turnover
-increased cost of working
-payment of standing charges 
Trends taken into account

Question 10

Indemnity period

Answer 10

Time taken to recover

Usually 1 year

Question 11

Supplier extensions

Answer 11

Supplier unable to supply material due to loss/damage by insured peril on suppliers premises

Question 12

Customer extension

Answer 12

Unable to accept delivery due to damage on property

Question 13

Public utilities

Answer 13

Damage to water/gas/electricity resulting in failure to supply services

Question 14

MV

Answer 14

Damage/loss to motor vehicle

Question 15

Transit

Answer 15

Damage/loss to goods in transit

Question 16

Cle

Answer 16

Commercial legal expense insurance

Question 17

CLE covers

Answer 17

Small niche aspects not covered elsewhere
Cost of defending
Claims for compensation
Cost of taking action against 3rd party

Question 18

Exclusions

Answer 18

Fines and penalties cover for risks occurring elsewhere

Question 19

Cle info

Answer 19

51% of winning
Can stop cover anytime they believe the don’t have this chance
Must use specific LR or cost equivalent
Must accept 1st reasonable offer

Question 20

Handling pecuniary claims

Answer 20

Check policy is in force
Insured peril
Check contribution
Prove loss 
Examine accounts