Professional Liability Insurance Terminology

Question 1

Define Admitted carrir

Answer 1

Admitted carrier is an insurance company licensed and authorized to do business in a specific state and subject to reguation by the state insurance commissioner

Question 2

Non-Admitted carriers

Answer 2

Not permitted to such scrutiny nor included in coverage by state guarantee fund

Question 3

What is a claim

Answer 3

Demand for money, services or property based on a right usually found in contract.

Question 4

What is claims - made policy?

Answer 4

Date in which a claim was made is the triggering event for coverage

Question 5

Define Statute of Limitations

Answer 5

Reported damages at discovery
Window within which damages can be reported; that begins after damages are discovered

Question 6

Statute of Repose

Answer 6

Window within which damages can be reported that begins at the date of substantial completion

Question 7

Define Betterment

Answer 7

When a negligence claim is due to omission (not error) betterment entails that the architect will only pay for the premium to improve the project beyond what was omitted