Focus deck Flashcards

1
Q

3 types of coverages usually provided under D&O policies

A
  1. When their company itself will not indemnify them, the policy covers directors and officers for liability for their wrongful acts in discharging their legal duties for the company
  2. When the company does indemnify its directors and officers, the policy will cover the company for the payments it makes in doing so
  3. The policy also covers the company for its own liability in the event of a lawsuit against it
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2
Q

Underwriting D&O Insurance

A
  • Financial Strength
  • Management
  • Industry Standing
  • General History
  • Company Bylaws
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3
Q

Potential D&O claims for non-profit organizations

A
  • Wrongful termination
  • discrimination
  • mismanagement of funds
  • inadequate training of volunteers or employees
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4
Q

Wrap-Up Policy

A
  • Insures against exposure to liability for loss or damage to third parties on the part of the participants in a commercial construction project
  • Generally extends to include the owners, project manager, contractors, subcontractors, architects, engineers, and their consultants
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5
Q

Advantages of Wrap-Up Insurance

A
  • eliminates disputes among the insurers of the other parties
  • reduces the loss adjustment expenses since their is only one insurer
  • assures uniformity of coverage for all parties, avoids potential gaps in coverage
  • assures the parties of minimum limits for each party and a single limit of insurance that applies exclusively to the project
  • covers the full term of the project plus an acceptable comp ops period
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6
Q

Disadvantages of Wrap-Up Insurance

A
  • presence of a builders risk policy for the project reduces the wrap-up insurer’s exposure, meaning lower premium
  • Coverage may not be as broad as under a contractors liability policy
  • Does not eliminate the need for parties to maintain their own separate policies for work unrelated to the project
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7
Q

Underwriting the Wrap-Up Policy

A
  • the qualifications and expertise of the policyholder
  • who the architect is, what kind of engineering expertise is required, and any unusual soil conditions that could cause loss to the building during or after completion of construction
  • the prior use of the land, was it a manufacturing site where pollutants were discharged into a holding pond?
  • what methods and type of construction will be used, will there be any blasting, shoring, underpinning
  • details concerning loss control and exposures associated with the surrounding area
  • the natural features of the site that may affect the project
  • whether any part of the project is to be occupied before the project is complete
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