Liability Insurance

Table of Contents

Welcome
Chapter 1:  Liability & Risk	1
Risk	1
Law of Large Numbers	3
Liability & Society	4
The Liability Risk	5
Losses	5
Results of Verdicts	7
Fraudulent Claims	8
The Basis for Liability Claims	9
Liability under Torts	10
Intentional Acts or Omissions	10
"Privileged"	13
Strict Liability Imposed by Statute Law	14
Negligence	15
Presumed Negligence	16
Imputed Negligence	17
Negligence in Tort Liability	18
1)  The required Elements of a Negligent Act	19
Legal Duty	19
Breach of Duty / A Wrong	20
Injury and/or Damage	21
Proximate Relationship	22
2)  Defenses in a Negligent Act	23
Contributory Negligence	23
Tort Liability Exposures	24
Real Property / Personal	25
Attractive Nuisances	26
Business Liability Exposures	27
Personal Liability Exposures	29
Chapter 2: General Liability	30
Insuring One's Liabilities	30
Declarations	31
The Policy Jacket	31
Coverage Parts	33
General Liability	33
Personal Liability Forms	34
Professional Liability Forms	35
Moral/Morale Hazard	36
Business Liability Forms	37
Comprehensive General Liability (GCL)	38
Owners’, Landlords’ & Tenants’ (OL&T)	38
Manufacturers’ & Contactors’ (M&C)	39

Other Liability Coverages	40
Physicians', Surgeons' & Dentists' Liability Policy	40
Druggists' Liability Form	41
Hospital Liability Form	42
Miscellaneous Medical Liability	42
Errors & Omissions Insurance	42
Directors' & Officers' Liability	43
Contractual Liability Form	44
Owners' & Contractors' Protective Liability Insurance	45
Products & Completed-Operations Liability Form	45
Products Recall Insurance	47
Personal Injury Liability Policy	48
Storekeepers' Liability Policy	48
Dramshop Liability Policy	49
Accountants' Professional Liability	50
Insurance Agents' & Brokers' Liability Policy	51
Lawyers' Professional Liability	51
Trustees' & Fiduciaries Liability	51
Employee Benefits' Manager Liability Policy	51
Actuaries Professional Liability	52
Medical Payments Insurance	52
Excess Insurance	53
Umbrella Liability Policy	56
Excess Personal Liability Policies	57
Chapter 3:  Auto Liability	59
Is there really a need?	59
Increasing Insurance Premiums	62
Premium Rates	64
File & Use Law	65
Open Competition Law	66
Automobile Insurance Plans (AIP)	69
Reinsurance	70
Unsatisfied Judgment Funds (UJF)	73
Uninsured Motorists Coverage	74
Automobile no-fault plans	76
Other no-fault plans	77
Safety and Prevention plans	80
Chapter 4:  Employers' Liability	81
Early Attempts	81
An Employers' Liability	82
Common-law Liability	82
Employers' Liability Acts	83
Workers' Compensation Laws	84
Compulsory & Elective Laws	85
Covered Perils	86
Types of Benefits under Workers' Compensation Laws	87
OASDHI	88
Workers' Compensation Insurers	89
Standard Workers' Compensation & Employers’ Liability Policy	91
Declarations	92
Insuring Agreements	93
Exclusions	93
Conditions	94
Basic Rating Plans	94
Experience Rating Plans	94
Premium Discount Plans	95
Retrospective Rating Plans	95
Occupational Safety & Health Act (OSHA)	97
Second-Injury Funds	97
Chapter 5:  Miscellaneous Liability Insurance	98
Aviation Insurance	98
Basic Nature	100
Types of Contracts	101
Hull Policies	101
Aircraft Liability	102
Admitted Aircraft Liability	102
Passenger Liability Insurance	102
Special Forms Used	102
Basic Policy Forms	104
Hull Insurance	104
Aircraft Liability	106
Admitted Liability	108
Medical Payments	108
Comprehensive Light Plane	108
Aviation Premium Rates	109
Boiler and Machinery Insurance	109
Direct Loss	110
Steam Boilers & Vessels	111
Engines, Electrical & Turbines	111
Indirect Loss	112
Consequential Loss	112
Use and Occupancy	112
Outage	113
Power Interruption	113
Types of Contracts	113
Glass Insurance	116
Policy Coverage	116
Broken Glass	117
Frames, Temporary Plates	118
Credit Insurance	118
Foreign or Export Credit Insurance	119
Accounts Receivable Insurance	120
Valuable Papers & Records Insurance	121
Title Insurance	121
Perils insured	121
Is there a need?	122
The Title Insurance Company	122
Title Insurance Contract Provisions	123
Group Title Insurance	124
Special Multi-Peril (SMP) Program	124
Simplified SMP Package	125
Chapter 6:  Underwriting Liability Policies	128
The role underwriting plays	128
The Agent's role in Underwriting	130
The Underwriting Selection Process	131
Auto Underwriting	134
Rating	136
Primary Rating Factors	138
Secondary Rating Factors	140
Other Rating Factors:  Moral & Morale Hazard	142
Underwriting for Business Liabilities	143

United Insurance Educators, Inc.

PO Box 1030

Eatonville, Washington 98328

(253) 846-1155

Email: mail@uiece.com