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

5

    Mental Distress

5

    Defamation

6

      Defamation or Slander on Social Medias

6

    False Imprisonment

8

Intentional Interference with Property

8

    Trespass

8

    Conversion

8

    Privilege

9

    Mistakes

9

    Consent

9

    Protective Acts

10

Absolute Liability

10

Strict Liability

11

Negligence

11

A Reasonable Man

11

Chapter 3:  When is Umbrella Insurance Necessary

12

  Third-Party Forms

12

  General Liability Forms

12

Actual Claims Result from Negligence

13

Primary Underlying Policies

14

Terms:  Coverage & Liability

14

Legal Liability Must Exist

15

Public Opinion

15

  Ownership & Liability

15

  News Exposure

16

Paying for a Legal Defense

16

The Law of Negligence

16

    Successful Liability Claims

16

Relaxed Standards for Evidence of Negligence

17

  Daily Risks of Life

17

  Dual Risk Contributions

17

  Injury Avoidance

18

  Shared Blame – Injured Party Preference

18

Absolute Liability

18

  Determining Monetary Damages

18

Jury Awards

18

Umbrella Liability Insurance

19

  Excess Coverage

20

Chapter 4:  Umbrella Policy Considerations

21

Excess Liability Insurance

21

  Excess in 3 Ways

21

  Million Dollar Limits

22

  An Indemnity Policy

22

Bumbershoot

23

  Comprehensive Ceiling Coverage

23

  Excess Personal Liability Coverage

23

  Excess Liability versus Excess Coverage

24

Exclusions in Coverage

24

Legal Contracts

24

  Offer & Acceptance

25

  A Premium Must be Paid

25

  Legal Competence

26

  A Legal Reason

26

The Liability Policy

27

  No Standard Form

27

  Catastrophic Coverage

27

  Primary Purpose

28

Characteristics of Personal Umbrella Policies

28

Policy Layout

30

  Risk Management Field

32

Chapter 5:  Underwriting the Umbrella Policy

33

Assessing Policy Risks

33

Books of Business

33

  Underwriting Based on Exposures & Risks

34

Adverse Selection

34

Risk Classification

34

Pricing Specific Contract Risks

35

Actuarial Equity

35

Subsidizing Rates

36

Exposure Distribution

36

Recognizing the Underwriters

36

  The Agent as a Preliminary Underwriter

37

  Staff Underwriters

37

  Line Underwriters

38

  Actual Underwriting Processes

38

Information:  The Agent’s Role

39

  Information & the Inspection Company

40

Accepted or Rejected

41

  Standard Risk Applicant

41

  Preferred Risk Applicant

41

  Substandard Risk Applicant

41

Post-Selection

42

  Unique Aspects of Post-Selection

43

Retention

44

Line Limits

44

Underwriting & Production

44

Premium Rates

45

Chapter 6:  Agent Ethics

46

Everyone has a Code of Ethics

46

Determining Our Own Life Goals

46

Controlling Behavior

47

Defining Ethics

47

“Ethics” – from Ethos Meaning Character

48

Moral Excellence

48

Imitating Other’s Behavior

49

Religion & Ethics

49

Continually Learning

49

Behavior Examples:  Example 1

50

    Example 2

51

    Example 3

52

    Example 4

53

    Example 5

54

The Formation of Values

54

Four Basic Issues

55

Facing Ethical Issues Daily

56

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

56

Egoists (Not Eotists)

57

Ethical Egoism

58

Day-to-Day Heroism

59

  Question #2 – What is the Scope of Ethics?

59

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

61

Believing in Right & Wrong

61

Religion – a Common Component

62

Addressing Three Questions

62

Competency

63

Understanding the “Why” of Your Profession

63

Who Do You Choose to Work for?

64

    Example 1

64

    Example 2

65

    Example 3

66

    Example 4

66

Back to the Question of “Why?”

67

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

67

Reactions of Our Actions

67

Ethical Responsibility - a Matter of Daily Choices

68

Determining Identity

69

Objectivist Ethics

69

  Thinking Individuals will always be the Top Performers

69

Objectivist Ethics as a Theory

70

What Does Ethics In Action Mean?

70

Man’s Nature

71

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

73

Forming Who We Are

74

Standing Up for What We Believe

74

“Levels” of Ethics

75

Changing Our Views

76

  A survey of CEO’s

77

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

82

  Can Honesty Always Be Considered?

85

Repeating Mistakes Through Lack of Knowledge

85

Love Envieth Not

86

  Where Did the Dishonest Reputation for Salespeople Come From?

86

Implied Statements

87

Due Diligence

87

  What Does Due Diligence Mean?

88

  Agent Representation

88

Three Reasons to Practice Due Diligence

89

Gathering Company Information

89

Insurance Company Financial Statements

90

Assimilating the Information Gathered

90

Company Rating Services

90

 

United Insurance Educators, Inc.

8213 – 352nd Street East

Eatonville, WA  98328

www.uiece.com