Chapter 3- COBs in London Market

Question 1

First party insurance

Answer 1

Any damage to insured property
Referred to as particular average
Each side has to pay for each other’s ship
But can claim back the money from hull insurance after excess

Question 2

Builders risk

Answer 2

Insurance against time building and cost

Question 3

Loss of earnings ship

Answer 3

14 day waiting period, 150 day indemnity. If damage prevents income must be market or business risk instead

Question 4

Difference between cargo and goods

Answer 4

Cargo is physical items.
Goods cover for the person or organisation moving them

Question 5

Jewellers block insurance

Answer 5

Between trade shows or jewellers

Question 6

Satellite pre launch insurance

Answer 6

Off risk when ignited

Question 7

War and strikes insurance

Answer 7

Can cancel immediately and reinstate as otherwise moving between areas would be uninsurable

Question 8

P and I marine liabilities

Answer 8

Injuring some else or property
Crew, visitors, pollution
Also purchased by ports

Question 9

Political risks

Answer 9

Restrictions of hostile government actions
Asset risks such as CEND CCP
Frustration risks such as non payment and non delivery
Alternative to slow export credit schemes

Question 10

Offshore energy

Answer 10

Exploration
Construction of rigs
Operational physical and liability
War risks
Windstorm risks
Lack of mobility

Question 11

Property insurance

Answer 11

Includes reinstatement
Stock, theft, glass, goods in transit

Question 12

Pecuniary insurance

Answer 12

Money- cash in transit

Question 13

Construction insurance

Answer 13

Contractors all risks- by contractor for subcontractor

Question 14

Downstream energy

Answer 14

Onshore
Refining elements
Midstream is pipelines

Question 15

Business interruption

Answer 15

Contingent business interruption- covers loss of power etc.

Question 16

Casualty

Answer 16

Workers compensation
Public liability
Professional liability
Motor- not London market
General liability
Products liability

Question 17

Bloodstock

Answer 17

Horses, farms

Question 18

contingency insurance

Answer 18

Event cancellation
Weather
Prize indemnity- large payout
Death and disgrace
Over redemption of offers

Question 19

personal accident

Answer 19

No idemnity, as no value
Accident, sickness, unemployment cover
Death in service

Question 20

Kidnap and ransom

Answer 20

Covers payout, medical, speciality team
Secret insurance
Covered in marine for pirates

Question 21

Intellectual property insurance

Answer 21

Rights to inventions, trademarks ,copyright and legal cost of defending

Question 22

Aviation- physical damage

Answer 22

Construction, propulsion, experience of pilot

Question 23

Aviation liability

Answer 23

Passengers
Third party- baggage handler
Product related- Fuel, food

Question 24

Aviation loss of license

Answer 24

Pilot failing medical
Personal replacement income
Preventing trade

Question 25

Airport operator policy

Answer 25

Premises liability Products liability Hangar keepers

Question 26

Advantages of reinsurance

Answer 26

Insurers capacity Net position= gross- reinsurance Smooth peaks and troughs New COBs Protecting a portfolio- Faculative/treaty New territories

Question 27

Captive insurers

Answer 27

Takes risk from parent

Question 28

Mutual insurers

Answer 28

Like minded individuals forming insurance pool, often against certain COBs