Umbrella Insurance

Table of Contents

 

Chapter 1:  What is Umbrella Insurance

1

Umbrella Policy Questions

1

Umbrella Insurance Defined

1

Liability Dollars Figures

1

Price Variance

2

Chapter 2: 

    How Does Umbrella Insurance Fit in with General Liability Claims

3

Liability Insurance for Liability Exposures

3

Torts

3

Intentional Torts

4

Intentional Interference with the Person

4

    Battery

4

    Assault

4

    Mental Distress

4

    Defamation

5

    False Imprisonment

5

Intentional Interference with Property

6

    Trespass

6

    Conversion

7

    Privilege

8

    Mistakes

8

    Consent

8

    Protective Acts

8

Absolute Liability

9

Strict Liability

9

Negligence

9

A Reasonable Man

10

Chapter 3:  When is Umbrella Insurance Necessary

11

  Third-Party Forms

11

  General Liability Forms

11

Actual Claims Result from Negligence

12

Primary Underlying Policies

13

Terms:  Coverage & Liability

13

Legal Liability Must Exist

14

Public Opinion

14

  Ownership & Liability

14

  News Exposure

15

Paying for a Legal Defense

15

The Law of Negligence

15

    Successful Liability Claims

15

Relaxed Standards for Evidence of Negligence

16

  Daily Risks of Life

16

  Dual Risk Contributions

16

  Injury Avoidance

17

  Shared Blame – Injured Party Preference

17

Absolute Liability

17

  Determining Monetary Damages

17

Jury Awards

18

Umbrella Liability Insurance

18

  Excess Coverage

19

Chapter 4:  Umbrella Policy Considerations

20

Excess Liability Insurance

20

  Excess in 3 Ways

20

  Million Dollar Limits

21

  An Indemnity Policy

21

Bumbershoot

22

  Comprehensive Ceiling Coverage

22

  Excess Personal Liability Coverage

22

  Excess Liability versus Excess Coverage

23

Exclusions in Coverage

23

Legal Contracts

24

  Offer & Acceptance

24

  A Premium Must be Paid

25

  Legal Competence

25

  A Legal Reason

25

The Liability Policy

26

  No Standard Form

26

  Catastrophic Coverage

27

  Primary Purpose

27

Characteristics of Personal Umbrella Policies

28

Policy Layout

29

  Risk Management Field

31

Chapter 5:  Underwriting the Umbrella Policy

32

Assessing Policy Risks

32

Books of Business

32

  Underwriting Based on Exposures & Risks

33

Adverse Selection

33

Risk Classification

33

Pricing Specific Contract Risks

34

Actuarial Equity

34

Subsidizing Rates

35

Exposure Distribution

35

Recognizing the Underwriters

35

  The Agent as a Preliminary Underwriter

36

  Staff Underwriters

36

  Line Underwriters

37

  Actual Underwriting Processes

37

Information:  The Agent’s Role

37

  Information & the Inspection Company

39

Accepted or Rejected

39

  Standard Risk Applicant

40

  Preferred Risk Applicant

40

  Substandard Risk Applicant

40

Post-Selection

41

  Unique Aspects of Post-Selection

41

Retention

42

Line Limits

43

Underwriting & Production

43

Premium Rates

43

Chapter 6:  Agent Ethics

45

Everyone has a Code of Ethics

45

Determining Our Own Life Goals

46

Controlling Behavior

46

Defining Ethics

46

“Ethics” – from Ethos Meaning Character

47

Moral Excellence

47

Imitating Other’s Behavior

48

Religion & Ethics

48

Continually Learning

48

Behavior Examples:  Example 1

49

    Example 2

50

    Example 3

51

    Example 4

52

    Example 5

53

The Formation of Values

53

Four Basic Issues

54

Facing Ethical Issues Daily

55

  Question #1 – Is It Possible to Teach Ethical Behavior?

55

Egoists (Not Eotists)

56

Ethical Egoism

57

Day-to-Day Heroism

58

  Question #2 – What is the Scope of Ethics?

58

  Question #3 – What Does it take to be a Moral Person

60

Believing in Right & Wrong

60

Religion – a Common Component

61

Addressing Three Questions

61

Competency

62

Understanding the “Why” of Your Profession

62

Who Do You Choose to Work for?

63

    Example 1

63

    Example 2

64

    Example 3

65

    Example 4

66

Back to the Question of “Why?”

66

  Question #4 – What are Our Responsibilities to Other Moral Persons?

66

Reactions of Our Actions

67

Ethical Responsibility  - a Matter of Daily Choices

67

Determining Identity

68

Objectivist Ethics

68

  Thinking Individuals will always be the Top Performers

69

Objectivist Ethics as a Theory

69

What Does Ethics In Action Mean?

69

Man’s Nature

71

It’s Easier to Say it than it is to Actually Do It

73

Forming Who We Are

73

Standing Up for What We Believe

74

“Levels” of Ethics

75

Changing Our Views

76

  A survey of CEO’s

76

Keeping Our Priorities in View

77

Psychology or Manipulation

78

Can Ethics be a Part of Promotional Selling?

80

Ethical Conduct is Hard Work

81

Sympathy or Empathy

81

  Can Honesty Always Be Considered?

84

Repeating Mistakes Through Lack of Knowledge

85

Love Envieth Not

85

  Where Did the Dishonest Reputation for Salespeople Come From?

86

Implied Statements

86

Due Diligence

87

  What Does Due Diligence Mean?

87

  Agent Representation

88

Three Reasons to Practice Due Diligence

88

Gathering Company Information

89

Insurance Company Financial Statements

89

Assimilating the Information Gathered

89

Company Rating Services

90

 

United Insurance Educators, Inc.

8213 – 352nd Street East

Eatonville, WA  98328

www.uiece.com