Chapter 3- COBs in London Market Flashcards Preview

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Flashcards in Chapter 3- COBs in London Market Deck (28):
1

First party insurance

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

2

Builders risk

Insurance against time building and cost

3

Loss of earnings ship

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

4

Difference between cargo and goods

Cargo physical items, not storage
Goods cover for person or organisation moving them

5

Jewellers block insurance

Between trade shows or jewellers
Physical loss or damage

6

Satellite pre launch insurance

Off risk when ignited
Aggregation of insured items likely, same place

7

War and strikes insurance

Can cancel and immediately reinstate
Available as the ship is constantly moving between areas, otherwise would be uninsurable

8

P and I marine liabilities

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

9

Political risks

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

10

Offshore energy
Upstream

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

11

Property insurance

Includes reinstatement
Stock, theft, glass, goods in transit (non marine)

12

Percuniary insurance

Money- cash in transit
Fidelity guarantee- against employee fraud

13

Construction insurance (percuniary)

Contractors all risks- by contractor for subcontractor
Erection all risks- machinery, combines 3rd party and bodily, adage and liability

14

Downstream energy

Onshore
Refining elements
Midstream is pipelines

15

Business interruption

Contingent business interruption- covers loss of power etc.
Advanced loss of profits ALOP- additional cover on CAR and EAR to cover delay of materials or damage

16

Casualty (non marine liability)

Workers compensation
Public liability- e.g. Riding act
Professional liability
Motor- not London market
General liability- e.g. Advertising injury
Products liability

17

Bloodstock

Horses, farms
Death or illness and future offspring

18

Contingency insurance

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

19

Personal accident

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

20

Kidnap and ransom

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

21

Intellectual property insurance

Rights to inventions, trademarks, copyright
Legal cost of defending

22

Aviation- physical damage

Construction, propulsion, experience of pilot
Take off, flying , landing

23

Aviation liability

Passengers,
Third party- baggage handler etc
Product related, fuel, food etc

24

Aviation loss of license

Pilot failing medical
Personal replacement income
Preventing trade

25

Airport operator policy

Premises liability
Products liability
Hangar keepers

26

Advantages of reinsurance

Increases capacity
Net position = gross - reinsurance
Smooths peaks and troughs
New COBs
Protecting a portfolio- facultative /treaty
New territories

27

Captive insurers

Takes risk from parent
Not impacted by premium increases

28

Mutual insurers

Like minded individuals forming insurance pool, often against certain COBs