main concerns Flashcards
(24 cards)
road traffic act only
minimum cover for bodily injury/death, damage to property and expenses to third party
third party motor
property damage to third party
can be fire and theft too
comprehensive
‘all risks’ incl malicious damage but not wear and tear
main travel uw consideration
destination
main glass uw consideration
geographical location
main building uw consideration
use
preamble/recital clause
sets scene, 2 parties, obligations
operative clause
outlines cover
policy schedule
summarises what is personal and specific e.g SI, limit of liability, subject matter
cover note
temporary evidence of cover and has name n policy period
calendar year
date of LOSS
underwriting year
date of INCEPTION
policy year
unique 12 months
accounting year
whenever this may be e/g oct-sept
cidra 2012
consumers - full and accurate and depends on qs asked by insurer
insurance act 2015
non-consumers e.g RE and have a duty of fair presentation - info must be clear and accessible
quota share
every risk insurer accepts they will cede a % of the risk and part of the premium to reinsurer
surplus
multiples lines of reinsurance when the SI exceeds their retention/maximum line
excess of loss
good for large/complex risks as it is per risk/event basis
stop loss
protecting their loss ratio so is triggered when it exceeds a certain %
pecuniary/BI/gross profit formula
gross profit = (turnover + closing stock) - (opening stock + uninsured working expenses)
premium calcuation
SI x Rate divided by 100/1000
claims loss ratio equation
claims incurred divided by premium received x 100
average
value insured divided by value at risk x the loss
