Section 3C Flashcards
Personal Umbrella Liability
Pays after the primary policy pays and the retention requirement is paid.
Retention Requirement
Acts like a deductible
On a Personal Umbrella Liability, it may be as high as $1,000
It only covers personal liability.
Commercial Umbrella Liability
Limit up to $50,000,000 or more
Is written over and above a business’ underlying CGL, auto liability, and employers liability coverages
Retention Requirement (Deductible) can be as high as $25,000
Coverage is usually very broad on a
Commercial umbrella and it is worldwide and written on an occurrence basis.
Professional Liability for doctors, lawyers, real estate agents, and insurance agents is needed
To cover their professional activities
Professional Liability
Does not cover fraud or dishonest or criminal acts
Malpractice
Sold to medical professionals, covers BI
Errors and Omissions (E&O)
Sold to lawyers, agents, and accountants
Covers financial damages, but generally excludes BI and PD with the exception of architects and engineers
Directors and Officers Liability (D&O)
Sold to board members/officers of corporations, covers errors and omissions and lawsuits brought by stockholders
Doesn’t cover fraud, embezzlement, or illegal activities
It covers liability resulting from actions of a director or officer (such as mismanagement of corporate assets) , inactions, and errors and omissions.
Professional Liability is issued on a claims made basis.
It requires the
consent of the insured to settle a claim
Fiduciary Liability
Personal holding the funds or property of another in a position of trust and who is obligated to act in a prudent and ethical manner.
Examples: attorney’s, bank trustees, custodians, and executors
Liquor Liability
Purchased by tavern/nightclub owners who can be sued under dram shop laws, which state a person serving someone who is intoxicated or contributing to the intoxication of another person may be liable for injury or damage
Employment Practice Liability
Provides protection for an employer against claims made by employees,or potential employees.
Aviation
Provides coverage for both liability and hull damages
Excluded if airworthiness certificate is no longer valid
Surplus Lines
Unauthorized surplus line carriers are free from state regulation in the areas of policy forms and rates.
Surplus lines business may be transacted through a licensed surplus lines broker.
Brokers must obtain a contract to represent a surplus lines insurer
