Terminology

Question 1

What’s primary layer.

Answer 1

The initial or first layer of insurance coverage in a policy. It provides coverage up to a specified limit for a covered losses or claim. This layer is typically first to respond when a loss occurs. Its also Usually the broadest and most comprehensive part of the insurance policy.

Question 2

Excess Layer

Answer 2

Also know as the “umbrella” or “excess insurance” comes into play once the primary layer’s coverage limit has been exhausted. It provides coverage after the primary layer. It designed to provide extra protection.

Question 3

What is FAC reinsurance

Answer 3

These are policies reinsured on a case by-case basis. Unlike treaty reinsurance, which covers a portfolio of risks

Question 4

What are the 3 common triggers called

Answer 4

Occurance-Based Triggers
Claims-Made Trigger
Time-Based Triggers

Question 5

What’s an Occurance-Based Trigger

Answer 5

These triggers are based on the occurrence of a specific event during the policy period. Examples Include:

Property Insurance: Damage or Loss to the insured property due to fire, theft, natural disasters, etc.
Liability Insurance: Bodily injury (B/I) or property damage caused by the insured party.

Question 6

What’s a Claims-Made Triggers

Answer 6

These triggers are based on the submission of a claim during the policy period or within a specified timeframe after the policy expires. Examples include:

Professional Liability Insurance: Claims made against the insured professional for errors or omissions in their professional services during the policy period

Directors and Officers Liability Insurance: Claims made against the insured directors or offices for wrongful acts committed during the policy period

Question 7

What’s a time-Based Trigger

Answer 7

These triggers are based on the passage of time or the occurance of a specific date. Example include:

Life Insurance: The death of the insured individual within the policy term.
Term Insurance: The expiration of the policy term.

Question 8

What’s in a declaration page

Answer 8

Policy number, Policy Period, Coverage, Property, attachment point, TIV, Premium, Brokerage

Question 9

What’s an aggregate

Answer 9

The highest amount of money an insurer is willing to pay out, to settle a claim in a given time period (normally a year).