1. Introduction Flashcards
Two ways G indirectly regulates insurance market
Flood and Pool Re
Three compulsory kinds of commercial insurance
Motor, employers’ liability and professional indemnity insurance
How does the company insurance market distribute profit
Distribute profit by dividend/retained
What is profit made from in the insurance market (for insurers)
Premium + investment income, less admin costs
Lambert v CoOp shows?
MIA applies beyond marine insurance
Who is the broker an agent of
Insured
Two kinds of specialist insurance
Aviation and space
What is the most common intermediary on the insurance market
Broker
What does PII cover
Professional advisers w/ DoC to client - negligence claims
What does employers’ liability insurance cover
Claims by employees falling ill due to employment
What statute codified marine insurance, but applies beyond
MIA
Who pays broker’s charges (brokerage)
Insurer
Two states of the insurance market (for whether premiums are high or low etc.)
Soft or hard
What is Lloyd’s
Society of Ms sorted into syndicates
Three major classes of individual insurance
Motor, life and personal accident
Three distinct insurance providers
Lloyd’s, company market and mutuals
Who must have employers’ liability insurance
All UK employers
Up to what limit are Ms liable in a mutual
Only up to premium
What case shows MIA applies beyond marine insurance
Lambert v CoOp
Soft insurance market means…
Low premiums, broad policy coverage
What is a captive insurance company
Corporation sets up insurance C for its own insurance needs
What restriction on profit distribution applies for company insurance market
Must retain proportion to meet projected future claims (‘insurer’s reserve’)
What is an insurance agent
Sales rep of insurer
What is a mutual
C limited by guarantee, run by policyholders for their own benefit
