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50 Cards in this Set
- Front
- Back
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3 basic forms of an Excess Liability Policy |
"Following form" connected to a policy, Self-contained policy, Combination of the 2 |
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Excess Liability Policy |
Covers liability claims excess of the limits of an underlying policy or stated retention amount |
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Umbrella Liability Policy |
Provides excess coverage over several primary policies and provide coverage not available in the underlying policies |
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What do noteworthy differences between general conditions of primary and umbrella liability concern? |
Maintenance of underlying insurance and coverage territory |
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How does Management Liability differ from professional liability? |
Management liability is about wrongful acts of an organization/individuals in their roles managing operations of an organization |
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4 ways professional and management liability differ from CGL |
Claims-made trigger, Consent to settle, Duty to defend and decision of defense council, Deductibles |
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3 main types of Management Liability |
Directors and officers liability, Employment practices liability, Fiduciary liability |
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Directors |
Selected by owners to make strategic decisions regarding the organization |
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Officers |
Drawn from organization's top management, selected by the board of directors |
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Entity coverage |
Covers claims made directly against a corporation (the entity) for wrongful acts |
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Who is insured under Employment Practices Liability insurance |
Corporation and Current and former director and officers, employees |
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Fiduciary |
Anyone whose role in employee benefits involves discretionary control or judgment in the design, administration, funding, or management of a benefit plan |
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Employee Retirement Income Security Act (ERISA) |
Most comprehensive statute regarding employee benefits |
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5 common types of environmental insurance policies |
Site-specific environmental impairment liability, Underground Storage tank compliance, Remediation stop-loss, Contractors pollution liability, Environmental professional errors and omissions liability |
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4 types of losses Environmental Impairment Liability (EIL) covers |
BI, PD, Cleanup costs, Defense expenses |
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2 Notable qualifications of EIL BI&PD |
BI/PD must result from pollutants emanating from an insured site, Physical injury or actual exposure to pollutants is required in some of the policy forms to trigger coverage for BI claims |
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Cleanup costs |
Removal or remediation of: Soil, surface water, groundwater, or other contamination in response to a covered pollution liability loss |
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On what sort of basis is Site Specific EIL and Environmental Professional E&O coverage provided? |
Claims made |
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What is the core coverage of an Underground Storage Tank (UST) Compliance policy and a Contractors Pollution Liability (CPL) policy? |
Site specific EIL |
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Separate limit of defense costs for UST policy |
25% of policy limit |
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Two provisions of the UST policy |
60 day notice of nonrenewal, Automatic extended Reporting period |
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4 common exclusions of Remediation stop loss policies |
Willful noncompliance with environmental regulations, BI, Contractual liability, War |
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What sort of coverage trigger do CPL policies have? |
Claims made OR Occurrance |
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What does a CPL cover? |
Contractor's operations and activities at project stores, Completed operations, Contractual liability exposures |
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5 common excluded exposures in CPL policies |
Asbestos, Radioactive matter, Claims arising out of insured's products, Damage to sites owned by or leased to insured, Professional Liability |
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By who is most aircraft insurance provided? |
A pool of insurers or underwriters in the London market |
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2 strict qualifications pilots must meet for Aircraft Insurance |
1. Hold appropriate license and current medical certification from US FAA 2. Have a specified # of hrs if experience as pilot in command if the type of aircraft insured |
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What type of deductible does Aircraft hull insurance usually have? |
Either a specific dollar amount or a stated percentage of the aircraft's insured value |
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Why do deductibles not eliminate many claims for aircraft insurance? |
Even minor repairs can cost thousands of dollars |
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3 types of coverage aircraft liability insurance is usually supplemented by |
Medical Payments Coverage, Passenger Voluntary Settlement Coverage, Non owned Aircraft Liability Coverage |
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10 Cyber Risks Insuring Agreement |
Electronic Data Protection, Cyber Extortion, Cyber Crime, Notification or Remediation, Business Interruption, Network Security Liability, Privacy Liability, Electronic Media Liability, Technology Errors and Omissions Liability, Intellectual Property Liability |
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Electronic Data Protection Insuring Agreement |
Provides coverage for costs to recover or restore electronic data that has been altered, destroyed, deleted, or damaged I.e. virus attack |
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Cyber Extortion Insuring Agreement |
Coverage for expenses related to computer network kidnap/ransom event Ex: hacker threatens to release personal details |
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Cyber Crime Insuring Agreement |
Covers theft of money, securities, and intangible property Ex: computer attacks/fraud, divert billing |
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Notification or Remediation Insuring Agreement |
Covers expenses related to crisis management during and after cyber risk loss
Ex: costs to notify customers of breach, public relations plan |
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Business Interruption Insuring Agreement |
Coverage for loss of business income, loss of contingent business income, and payment of extra expenses due to a computer network breach or other specified cyber event Ex: Denial of service attack |
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Network Security Liability Insuring Agreement |
Coverage for liability arising from security breaches to an insured's court network Ex: malware transmission |
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Privacy Liability Insuring Agreement |
Coverage for liability arising from unauthorized disclosure or us of private information of others or from insured's failure to comply with privacy provisions contained in laws (HIPPA, GLBA) Ex: security breach or unauthorized access/use of information |
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Electronic Media Liability Insuring Agreement |
Coverage for liability arising from insureds electronic content (emails, website, message board, etc) resulting in actual or alleged acts of defamation, disparagement, libel, slander, or false arrest Ex: company posting false/exaggerated claims about their product |
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Technology Errors and Omissions Liability Insuring Agreement |
Covers liability arising from any negligent act, error, or omission relating to an insured's products or services provided to others Ex: IT suggesting software update that crashes network for a week |
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Intellectual Property Liability Insuring Agreement |
Coverage for any copyright, trade secrets, trademark, or patent infringement claim arising out of use of insureds protected ideas or works Ex: website offering film downloads for fee before they are authorized for release by the film studio |
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6 coverages offered with an International territory |
Commercial property and business income, Commercial general liability, Supplemental and excess commercial auto, Voluntary workers compensation and employers liability, Commercial crime (including kidnapping and ransom) Political risk insurance |
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How can a multinational enterprise make its coverage uniform for all its locations? |
Purchase admitted coverage and combine them with difference in conditions or difference in limits coverages |
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Terrorism Risk Insurance Act of 2002 |
Established cost sharing mechanism that allowed insurance industry and federal government to jointly pay claims resulting from acts of terrorism |
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4 criteria for "act of terrorism" |
It is an act of terrorism It is a violent act or an act that is dangerous to human life, prophet, or infrastructure It resulted in damage within the US It was committed by individual(s) as part of an effort to coerce the civilian population of the US or influence US government policy or conduct through coercion |
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Aggregate insured losses for an act to be eligible for federal participation in payment of losses |
$5 million |
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$100 million program trigger |
Increases the aggregate loss trigger amount by $20 million each calendar year |
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How much do private insurers and federal government pay for terrorism losses? |
Individual insurer pays 100% until such losses exceed 20% of the insurer's earned premium for the previous year. Then the federal government and insurer share the cost of losses up to $100 billion |
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5 types of Surety bonds |
Contract bonds, License and permit bonds, Public official bonds, Court bonds, Miscellaneous bonds |
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4 types of contract bonds |
Bi bond, Performance bond, Payment bond, Maintenance bond |
