Chapter 3

Question 1

what vessels does yacht insurance cover

Answer 1

sailing vessels
motor vessels
inland vessels

Question 2

what does commercial vessel insurance cover

Answer 2

cargo vessels
cruise vessels
specialist vessels

Question 3

what does cargo insurance cover

Answer 3

physical damage to the goods

Question 4

what does good in transit insurance cover

Answer 4

liability insurance for the organisation moving the goods

Question 5

what is stock throughput insurance

Answer 5

storage and transit insurance combined

Question 6

what does specie insurance cover

Answer 6

loose gemstones
precious metals
valuable documents

Question 7

risk prevention for cash in transit

Answer 7

varied routes
armed crew
not leaving boat unattended

Question 8

what are examples of marine liabilites

Answer 8

injury/ death to crew
pollution like oil spill
damage to property or possesions

Question 9

what does upstream mean in marine insurance

Answer 9

any part of the industry involved with the extraction of oil and gas

Question 10

what are pecuniary insurances

Answer 10

relate to monetary loss rather than physical damage

Question 11

what is fidelity guarantee insurance

Answer 11

relates to employee fraud

Question 12

what does onshore insurance involve

Answer 12

elements of gas and oil industry that come after its been located

Question 13

what is bloodstock

Answer 13

horses

Question 14

what is livestock

Answer 14

other animals that arent pets

Question 15

types of contingencys covered by contingency insurance

Answer 15

event cancellation
weather related
prize indemnity
death or disgrace - bad PR for celeb who is fronting a business
over - redemption too many wins for competitions such as mcdonalds monopoly

Question 16

is reinsurance compulsorary

Answer 16

no but considered good practice

Question 17

reasons for reinsurance

Answer 17

for insurers to :
increase capacity
smooth out peaks and troughs
risk transfer

Question 18

what is to cede

Answer 18

act of sharing risk with reinsurers

Question 19

what is a cedant

Answer 19

the original insurer who is passing the risk to reinsuers

Question 20

what is cessant

Answer 20

the share of the risk passed to reinsurers

Question 21

what is a collecting note

Answer 21

document used to present claim to reinsurers

Question 22

what is facultative reinsurance

Answer 22

reinsurance for an individual risk

Question 23

what is non proportional reinsurance

Answer 23

where the premium and claims dont have a direct correlation

Question 24

what is proportional reinsurance

Answer 24

premium and claims are shared between insurer and reinsurer in pre agreed terms such as 30%

Question 25

what does retrocedant mean

Answer 25

a reinsurer obtaining reinsurance for itself

Question 26

what does retrocession mean

Answer 26

a cession where the entity ceding is already a reinsurer

Question 27

what does retrocessionaire mean

Answer 27

reinsurance to cover a wide portfolio of risks