Study 1:Liability Coverage Issue; Environmental Claims Flashcards
A happening or event. The continual or repeated exposure to an unfavorable situation is neither intended nor expected to cause injury or damage. The grouping of related loss into a single loss situation.
Occurrence
A provision in some insurance and reinsurance contracts covering only claims made during the terms of the contract
Claims-made-basis
Coverage is triggered when the incident that causes the loss or occurrence takes place
Occurrence basis
The insurance form that protects the insured against liability for committing an error or omission in the performance of professional duties. Generally, such policies are designed to cover financial losses rather than liability for bodily injury or property damage
Errors and omissions insurance (E & O)
Injuries other than bodily injury arising out of defined caused that usually include false arrest or detention, malicious prosecution, wrongful entry, or eviction, libel or slander, or violation of a person’s right to privacy other than in the course or advertising broadcasting television of publishing
Personal injury liability
A bar is created when someone by his action, or lack of it indicates that he will not exercise the right he has. He stops himself from exercising his right later. For example, if A owns a pen and stands by and watches B sell the pen to C, and if that pen belongs to B then A cannot later reclaim the pen, arguing that it was his.
Estoppel
An agreement signed by the policyholder after a loss, agreeing that the investigation and determination of the amount of damage by the insurance company shall not be construed as an admission of liability. It is used when the insured is in violation of a policy condition and there is a question as to whether or not the company is liable for a loss but it wishes to investigate the loss and determine the amount of damage.
Non-waiver agreement
An insurer’s notification to an insured that coverage for a claim may not apply. Such notification allows an insurer to investigate (or even defend) a claim to determine whether coverage applies (in whole or in part) without waiving its right to later deny coverage based on information revealed by the investigation. In reserving its rights to later deny coverage, the insurer is merely telling the insured of its concerns that the claim, in whole or in part, may not be covered under the policy, pending further investigation.
Reservation of rights letter
Reinsurance of risks on an individual case-by-case basis subject to acceptance or rejection by the insured.
Facultative reinsurance
Standard general liability policies include an exclusion for loss arising out of pollution. For certain exposures, this exclusion may be modified; for example, Sudden and accidental pollution arising from a fire
Pollution Exclusion
In law, a class of wrong that arises out of unreasonable, unwarranted, or unlawful use by a person of their own property, whether that property be real or personal or from the person’s own improper, indecent, or unlawful personal conduct and producing an annoyance, inconvenience, discomfort, or hurt to others or to their property that the law would presume a consequential damage. In insurance claims, it is most frequently met as a cause of action, arising from the escape of some obnoxious substance.
Nuisance
An illegal act against another person’s right or property
Trespass
Written statements, published in print or electronically with a permanent record, that damage a person’s reputation or business.
libel
The oral utterance or spreading of falsehood harmful to another’s reputation.
Slander
In law, a class of wrong that arises out of unreasonable, unwarranted, or unlawful use by a person of their own property, whether that property be real or personal or from the person’s own improper, indecent, or unlawful personal conduct and producing an annoyance, inconvenience, discomfort, or hurt to others or to their property that the law would presume a consequential damage. In insurance claims, it is most frequently met as a cause of action, arising from the escape of some obnoxious substance.
Nuisance
