Aic 32 – Liability Claim Practices – Chapter 1

Front 1

Claimant

Back 1

A party that makes a claim and that can be either a first-party claim­ ant or a third-party claimant.

Front 2

Third-party claim

Back 2

A demandagainst an insuredby a person or organization other than the insured or the insurer,seeking to recoverdamages that may be payable by the insured's liability insurance.

Front 3

Consent-to-settle clause

Back 3

An insurance policy provision, usuallyfound only in professionalliability policies, that requires the insurer to obtain consentfrom the insured before settlinga claim.

Front 4

Employment practicesliability (EPL) insurance

Back 4

Insurance that covers an organization, its directors and officers,and its employees againstclaims alleging damagesbecause of wrongful employment practices such as sexual harassment, wrongfultermina­ tion, and unlawfuldiscrimination.

Front 5

Sexual harassment

Back 5

A form of discrimination against an employeeby an employer based on the employee's gender,whereby the employerengages in unwel­ come sexual conduct as a condition of theworker's employment.Sexual harassment complaints are broken down into two categories: quid pro quo and hostile work environment.

Front 6

Quid pro quo sexual harassment

Back 6

A practice whereby an employerdemands or expectssexual favorsin exchangefor continued employment, workplace advancement, orotherjob-related benefits.

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Hostile work environment

Back 7

An environment that exists when an employeeis subjected to harass­ment that is so severeor pervasive that it alters the conditions of his or her employment and creates an abusive working environment.

Front 8

Occurrence-based policy

Back 8

Insurance policy that provides coverage for occurrences that happen within the policy period eventhough the policy may have expired.

Front 9

Claims-made policy

Back 9

A liability insurance policy in which a claim is made during the policy period or any extendedreporting period.

Front 10

Condition precedent

Back 10

An event that must occur beforea duty of performance arisesin a contract.

Front 11

Condition subsequent

Back 11

An event that, if it occurs,discharges a duty of performance in a contract.