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.

8213 352nd Street East

Eatonville, Washington 98328-8638

(253) 846-1155

 

Email: mail@uiece.com

 

Website: www.uiece.com