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Flashcards in Comm Chp 11 Deck (55)
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1

Excess Liability Policy

a policy that covers liability claims in excess of the limits of an underlying policy or stated retention amount

2

Umbrella Liability Policy

a liability policy that provides excess coverage above underlying policies and may also provide coverage not available in the underlying polices, subject to a self insured retention

3

Self Insured Retention (SIR)

an amount that is deductable from claims that are payable under an umbrella liability policy and that are not covered at all by any primary policy

4

Professional Liability INsurance

insurance that covers persons engaged in various occupations against liability resulting from their rendering or failing to render professional services

5

Management Liability Insurance

insurance that covers organizations and in some cases their directors, officers and other employees against claims for damages resulting from various wrongful acts that are not covered under other commercial liability polices common examples are directors and officers liability, employment practices liabilty insurance, employee benefit liability insurance, and fiduciary liability insurance

6

Retroactive Date

the date on or after which the injury, damage, or other insured event must occur in order to be covered in a claims made liability policy

7

Extended Reporting Period (ERP)

an additional period also called a tail, following the expiration of a claims made policy, during which the expired policy will cover claims first made for injury or damage that occurred on or after the polices retroactive date and before policy expiration

8

Directors and Officers (D&O) liability Insurance

insurance that covers a corporations directors and officers against liability for their wrongful acts covered by the policy and also covers the sums that the insured corporation is required or permitted by law to pay to the directors and officers and indemnification

9

Entity Coverage

coverage extenstion of D&O liability policies for claims made directly against a corporation ( the entity) for wrongful acts covered by the policy

10

Employment practices liability (EPL) insurance

insurance that covers an organizations, its directors and officers and its employees against claims alleging damages because of wrongful employment practices such as sexual harassment, wrongful termination, and unlawful discrimination

11

Fiduciary liability insurance

insurance that covers the fiduciaries of an employee benefit plan against liability claims alleging breach of their fiduciary duties involving discretionary judgement

12

Employee benefits liability insurance

insurance that covers an employer against liability claims alleging improper advice or other error or omissions committed while administering the employers employee benefit plan

13

Site-specific environmental impairment liability (EIL) policy

an insurance policy that covers third party claims arising from either sudden or gradual releases of pollutants from specified locations

14

Underground storage tank (UST) compliance policy

an insurance policy that provides proof of financial responsibility under governmental regulations that apply to the owners and operations of underground storage tanks containing fuel or other hazardous materials

15

Remediation stop-loss policy (cost cap policy

a insurance policy purchased to insure remediation cost that exceed the projected or anticipated cost of preforming an environmental cleanup of a specific location that is being sold

16

Contractors pollution liability (CPL) policy

an insurance policy that covers the pollution related loss exposures of a contractor

17

Aircraft insurance

insurance that covers liability due to the insureds ownership, maintenance, or use of aircraft, physical damage to aircraft owned or used by the insured, and other aircraft loss exposures

18

Intangible property

property that has no physical form

19

Denial-of-service attack

an attempt to overwhelm a computer system or network with excessive communication in order to deny users access

20

Malware

malicious software such as a virus that is transmitted from one computer to another to exploit system vulnerabilities in the targeted computer

21

Infringement

the unauthorized use of an individuals intellectual property

22

Obligee

the party to surety bond that receives the surety guarantee that the principal will fulfill an obligation or preform as promised

23

Principal

the party to a surety bond whose obligation or performance the surety guarantees

24

Suretyship

the obligation of one entity to answer for the debt default, or miscarriage of performance of duties by another entity

25

Contract Bond

a surety bond guaranteeing the fulfillment of obligations under construction contracts or other types of contracts

26

Surety

the party usually the insurer to a surety bond that guarantees to the obligee that the principal will fulfill an obligation or perform as required by the underlying contract, permit, or law

27

Bid Bond

a contract bond guaranteeing that a contractors bidding on a construction or supply contract will enter into the contract and will provide a performance bond if the bid is accepted

28

Performance Bond

a contract bond guaranteeing that a contractors work will be completed according to plans and specifications

29

Payment Bond

a contract bond guaranteeing that the project will be free of liens

30

Maintenance Bond

a contract bond guaranteeing that the work will be free from defects in material and workmanship for a specified period after the project is completed