🟩 Basic Concepts
What is the main purpose of liability insurance?
To protect people or businesses from financial loss due to legal claims.
What is a premium?
The regular payment you make for insurance coverage.
What does personal liability insurance protect against?
Claims for injury or damage caused by individuals.
Which law regulates insurance activity in Uzbekistan?
Law “On Insurance Activity,” adopted December 23 2022 (O‘RQ-845-son).
In which year did the Pepsi Uzbekistan case happen?
2021.
What does the word “liability” mean in insurance?
Legal responsibility for causing harm or damage.
What is a coverage limit?
The maximum amount an insurer will pay for a claim.
How is commercial liability different from personal liability?
It covers businesses, not individuals.
What are “technical reserves” in insurance?
Funds set aside to pay future claims.
What caused the Pepsi worker’s injury?
A machine with a faulty safety system.
What does liability insurance usually cover?
Injury, property damage, and legal costs if you’re at fault.
What does deductible mean?
The amount you pay out of pocket before insurance applies.
Which professionals need Errors & Omissions (E&O) insurance?
Doctors, lawyers, accountants, and consultants.
What is reinsurance?
When one insurer transfers part of its risk to another insurer.
Which insurance type helped Pepsi cover the costs?
Employer’s Liability Insurance.
Give one everyday example of when liability insurance might help.
When a customer slips in your store or you cause a car accident.
Explain indemnity.
The insurer compensates only for the actual loss, not for profit.
What does product liability insurance cover?
Harm or injury caused by defective products.
Which organization supervises insurance in Uzbekistan?
The Insurance Market Development Agency under the Ministry of Economy and Finance.
What improvement did Pepsi make after the case?
They strengthened workplace safety and inspection procedures.
Why is liability insurance important in modern society?
It prevents financial ruin, supports responsible behavior, and provides peace of mind.
What is the principle of utmost good faith (Uberrimae fidei)?
Both parties must be honest and disclose all important facts.
What kind of protection does employer’s liability insurance provide?
Covers employee injury or illness claims beyond workers’ compensation.
What is the goal of the EU’s Solvency II Directive (2016)?
To ensure insurers maintain enough capital and proper risk management.
What is the main lesson from the case?
Liability insurance protects companies from large losses and motivates better safety standards.