Liability Insurance

Table of Contents

Table of Contents

1

Welcome

5

Chapter 1:  Liability & Risk

6

  Risk

6

  Law of Large Numbers

8

  Liability & Society

9

  The Liability Risk

10

  Losses

10

  Results of Verdicts

12

  Fraudulent Claims

13

  The Basis for Liability Claims

14

  Liability under Torts

15

  Intentional Acts or Omissions

15

  "Privileged" 

19

Strict Liability Imposed 

20

  Negligence

21

  Presumed Negligence

22

  Imputed Negligence

21

Negligence in Tort Liability

23

  1)  The required Elements of a Negligent Act

24

  Legal Duty

24

  Breach of Duty / A Wrong

25

  Injury and/or Damage

26

  Proximate Relationship

27

  2)  Defenses in a Negligent Act

28

  Contributory Negligence

28

Tort Liability Exposures

29

  Real Property / Personal

30

  Attractive Nuisances

31

Business Liability Exposures

32

Personal Liability Exposures

34

 

 

Chapter 2: General Liability

35

Insuring One's Liabilities

35

  Declarations

36

  The Policy Jacket

36

  Coverage Parts

38

General Liability

38

Personal Liability Forms

39

Professional Liability Forms

40

Moral/Morale Hazard

42

Business Liability Forms

42

  Comprehensive General Liability (GCL)

43

  Owners’, Landlords’ & Tenants’ (OL&T)

44

  Manufacturers’ & Contactors’ (M&C)

45

 

Other Liability Coverages

45

  Physicians', Surgeons' & Dentists'  Liability Policy

45

  Druggists' Liability Form

47

  Hospital Liability Form

47

  Miscellaneous Medical Liability

48

Errors & Omissions Insurance

48

  Directors' & Officers' Liability

49

  Contractual Liability Form

50

  Owners' & Contractors' Protective  Liability Insurance

51

  Products & Completed-Operations   Liability Form

51

  Products Recall Insurance

53

  Personal Injury Liability Policy

54

  Storekeepers' Liability Policy

54

  Dramshop Liability Policy

55

  Accountants' Professional Liability

56

  Insurance Agents' & Brokers' Liability Policy

57

  Lawyers' Professional Liability

57

  Trustees' & Fiduciaries Liability

57

  Employee Benefits' Manager Liability Policy

58

  Actuaries Professional Liability

58

Medical Payments Insurance 

58

Excess Insurance

60

Umbrella Liability Policy

63

  Excess Personal Liability Policies

64

 

 

Chapter 3:  Auto Liability

66

  Is there really a need?

66

  Increasing Insurance Premiums

69

  Premium Rates

71

  File & Use Law / Open Competition Law

73

  Automobile Insurance Plans (AIP)

76

  Reinsurance

78

  Unsatisfied Judgment Funds (UJF)

81

  Uninsured Motorists Coverage

82

  Automobile no-fault plans

84

  Other no-fault plans

86

  Safety and Prevention plans

88

 

 

Chapter 4:  Employers' Liability

90

  Early Attempts

90

  An Employers' Liability

91

  Common-law Liability

91

  Employers' Liability Acts

92

Workers' Compensation Laws

93

Compulsory & Elective Laws

94

 

 

  Covered Perils

95

  Types of Benefits under Workers' Compensation Laws

96

  OASDHI

97

Workers' Compensation Insurers

99

Standard Workers' Compensation & Employers’ Liability Policy

101

  Declarations

101

  Insuring Agreements

102

  Exclusions

103

  Conditions  

103

Basic Rating Plans

104

  Experience Rating Plans

104

  Premium Discount Plans

105

  Retrospective Rating Plans

105

Occupational Safety & Health Act (OSHA)

107

Second-Injury Funds

107

 

 

Chapter 5:  Miscellaneous Liability Insurance

108

Aviation Insurance

108

  Basic Nature

110

  Types of Contracts

112

  Hull Policies

112

  Aircraft Liability

112

  Admitted Aircraft Liability

112

  Passenger Liability Insurance

112

  Special Forms Used

112

Basic Policy Forms

114

  Hull Insurance

114

Aircraft Liability

116

  Admitted Liability

118

  Medical Payments

118

  Comprehensive Light Plane

119

Aviation Premium Rates

119

Boiler and Machinery Insurance

120

  Direct Loss

120

  Steam Boilers & Vessels

121

  Engines, Electrical & Turbines

122

  Indirect Loss

122

  Consequential Loss

123

  Use and Occupancy

123

  Outage

123

  Power Interruption

122

Types of Contracts

124

Glass Insurance

127

Policy Coverage

127

  Broken Glass

128

 

 

  Frames, Temporary Plates

129

Credit Insurance

130

  Foreign or Export Credit Insurance

131

Accounts Receivable Insurance

132

Valuable Papers & Records Insurance

133

Title Insurance

133

  Perils insured

133

  Is there a need?

133

  The Title Insurance Company

134

  Title Insurance Contract Provisions

135

  Group Title Insurance

136

Special Multi-Peril (SMP) Program

136

Simplified SMP Package

136

 

 

Chapter 6:  Underwriting Liability Policies

140

  The role underwriting plays

140

  The Agent's role in Underwriting

142

  The Underwriting Selection Process

143

  Auto Underwriting

146

  Rating

148

  Primary Rating Factors

150

  Secondary Rating Factors

153

Other Rating Factors:  Moral & Morale Hazard

154

Underwriting for Business Liabilities

155

 

 

United Insurance Educators, Inc.

8213 352nd Street East

Eatonville, Washington 98328-8638

(253) 846-1155

 

Email: mail@uiece.com

 

2014