Chapter 26 - Profeesional Liability Insurance - Leo

Question 1

Define Physicians, Surgeons, and Dentist Professional Liability Insurance

Answer 1

Professional liability insurance that provides protection for medical professionals against lawsuits alleging a substantial error or omission.

Question 2

Define Errors & Omissions Insurance

Answer 2

Liability insurance policy that provides protection against loss incurred by a client because of some negligent act, error, or omission by the insured.

Question 3

Define Directors & Officers Liability Insurance

Answer 3

A commercial liability coverage that provides financial protection for the directors, officers, and the corporation if the directors and officers are sued for mismanagement of the company’s affairs.

Question 4

What is the 1st insuring agreement in a typical Physicians, Surgeons, and Dentist Professional Liability Insurance policy?

Answer 4

• Covers the individual liability of each person named as an insured on the declarations page
• The insurer agrees to pay all sums that the insured is legally obligated to pay as damages because of injury to which the insurance applies.
• The injury must result from a medical incident

Question 5

What is the 2nd insuring agreement in a typical Physicians, Surgeons, and Dentist Professional Liability Insurance policy?

Answer 5

-Applies to group liability, which refers to liability arising out of a partnership, LLC, association, or professional corporation. This covers the exposure of liability from any acts of malpractice committed by other partners.

Question 6

What is a medical incident?

Answer 6

any act or omission arising out of the rendering, or failing medical or dental services by the insured, or any person acting under the direction and supervision of the insured.

Question 7

What are the typical provisions of Physicians, Surgeons, and Dentist Professional Liability Insurance? 6

Answer 7

• First two agreements
• Liability is not restricted to accidental acts of the physician or surgeon.
• There is a maximum limit per medical incident and an aggregate limit for each coverage.
• Current forms permit the insurer to settle the claim without the physician’s or surgeon’s consent
• An extended reporting period endorsement can be added
• Professional liability insurance is not a substitute for other necessary forms of liability insurance.

Question 8

What insuring agreements are typically found in a Directors & Officers Liability Insurance policy?

Answer 8

• Coverage for the personal liability of directors and officers
• Corporate reimbursement coverage
• Entity Coverage - covers legal liability of a corporation if they are named as a defendant in a covered suit alleging wrongful acts by directors and officers.

Question 9

What are the common exclusions in D&O insurance?

Answer 9

• Bodily injury and property injury
• Libel and slander
• Personal profit, such as profit from insider trading
• Certain violation of the Securities Exchange Act of 1934 or similar provisions of state law.
• Return of salaries or bonuses illegally received without stockholder approval
• Deliberate dishonesty by an insured
• Failure to procure or maintain insurance
• Violation of ERISA law
• Illegal discrimination
• Insured vs. insured claims