Term
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Definition
provides very high limits of liability and very broad coverage for a reasonable premium charge.
-written to provide excess liability coverage over and above a client's other personal liability policies. |
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Term
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Definition
| like a deductible and is often as high as $1,000. |
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Term
| commercial umbrella policies |
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Definition
for businesses that need extremely high limits of liability insurance, these are available with limits up to $50,000,000 or more.
-written over and above a business' underlying CGL, auto liability, and employers liability covearges. |
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Term
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Definition
| considered this, with the underlying policies acting like a deductible. |
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Term
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Definition
doctors and lawyers etc. need CGL to protect them for such things as premises laibility, the CGL does not cover their professional activities so they need this.
-protects the insured against legal liability resulting from negligence, errors and omissions, and the rendering or failure to render proper professional services. -does not cover fraud or dishonest or criminal acts. |
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Term
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Definition
| sold to medical professionals, covers bodily injury liability |
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Term
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Definition
| sold to lawyers, agents and accountants. covers financial damages, but generally excludes BI and PD |
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Term
| Directors and officers liability D&O |
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Definition
| sold to board members/officers of corporations, covers errors and omissions and lawsuits brought by stockholders. |
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Term
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Definition
a person holding the funds or property of another in a position of trust and who is obligated to act in a prudent and ethical manner. Failure to do so could result in a lawsuit filed by a person harmed by the _ improper management of client funds.
-attorneys, bank trustees, custodians and executors. |
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Term
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Definition
| purchased by owners of taverns or night clubs that could be sued under the so called dram shop laws, which state that a person serving someone who is intoxicated or contributing to the intoxication of another person may be liable for injury or damage caused by the intoxicated person. |
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Term
| Employment practices liability |
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Definition
of concern to employers who may be sued for unfair or discriminatory hiring practices.
-provides protection for an employer against claims made by employees, former employees, or potential employees.
-discrimination, wrongful termination, harrassment. |
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Term
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Definition
provides coverage for both liability and hull damage.
-liability coverage applies to claims arising out of the ownership, maintenance, or use of the insured aircraft |
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Term
| surplus lines carriers, aviation pools |
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Definition
| due to the possibility of large losses, major aviation risks are often insured by _ or _, which consist of a group of insurers who join together to share risks and premiums. |
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Term
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Definition
specialize in coverages that are not available from authorized insurers.
-free from state regulation in the areas of policy forms and rates. |
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Term
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Definition
another type of miscellaneous commercial lines coverage, provide a guarantee that specific obligations will be fulfilled.
-the bond is a three-party contract |
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Term
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Definition
the insurance company that provides the bond in consideration for the premium paid.
1 of 3 |
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Term
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Definition
the party who has agreed to perform the obligation, who purchases the bond at the request of the obligee or as required under the terms of a contract with the obligee
2 of 3 |
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Term
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Definition
the party whose benefit the bond is written. If principal defaults on the obligation, damages are payable by the surety or _.
3 of 3 |
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Term
| obligee, principal, surety |
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Definition
| you the _ enter into an agreement that requires the contractor, the _, to purchase a contract bond from a surety, guaranteeing that the contractor will not default during the contract period. If the contractor does default, the insurance company the _ will pay you damages |
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Term
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Definition
| surety underwriters expect _ to be paid out |
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Term
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Definition
| states that in the event of default, the surety may place a lien against the personal assets of the principal |
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