Excess Liability
How does an insured formally cancel a policy? What form do they need to sign?
Acord 35 / Lost Policy Release
What do carriers normally list on the underlying schedule in regards to the underlying carriers information?
Policy term, issuing paper, limits, policy #
What are the Symbols for HNOA?
Symbols 8 & 9
An insurance policy is a contract between which two parties?
The insured and the insurer
Where can you find the email address to submit a claim?
It will be on the binder or policy
Where can I check if a specific named insured is covered on an excess policy?
Check the forms list for a named insured endorsement or check the follow form policy language
Generally, what is needed in an excess submission? Name 3 Items. Bonus point if you get more than 3
1. Acords
2. Supplemental / SOV Exposure Information
3. 5 years of currently valued loss runs for GL/AL/WC 4. Loss Summary - Loss info on any large claims that could break into the excess layer
5. Fleet Break Out
What other symbols can provide the same coverage at Symbol 1?
7, 8, & 9
What is the difference between and Additional Insured and an Additional Named Insured?
The main difference between an additional insured and an additional named insured is that an additional named insured receives the same full coverage as the named insured, while an additional insured receives coverage under certain circumstance
Sally went to see her friend Ashley that works at Wholefoods. When they were walking down one of the aisles they both slipped on a puddle of water. Ashley hurt her wrist and Sally hurt her leg. There was no sign to warn them of the water. What policies are trigger?
GL - Sally is a third party that experienced a bodily injury on Whole Foods premise
WC - Ashley is an employee that experience a bodily injury at work.
How many parties are involved in an excess wholesale placement?
4 parties
Can the E&S marketplace provide admitted excess policy options?
Yes
In CA for the admitted markets how many declinations do you need before going to an E&S broker?
3 carriers
True or False: On a GL policy medical payments will be paid regardless of fault
True
An employee driving an insured company vehicle on Saturday gets accident and seriously injures a 3rd party. Our employee was intoxicated and violated the company's auto procedures regarding personal use of it's vehicle. Location was Houston, Tx. Is there coverage? What policy?
When does a SIR come into play on an umbrella policy?
If there is not coverage in the underlying terms below.
What is the difference between an excess form and an umbrella form?
Excess is follow form of the underlying. Umbrella is restating the terms and can be different than the underlying policy. It can be broader terms. Umbrellas are retained limit forms. There is a SIR (Self Insured Retention)
Under Symbol 8 (hired autos) - Does borrowing constitute control?
No because it borrowed and not hired
What is minimum earned premium? What is the common percentage?
This is the minimum premium the carrier retains if the policy is cancelled. 25%
Our company manufactures ebikes. We source the battery directly from China. One of our bikes starts a fire and burns down a house. Covered?
What is a look up clause? What does the stop from happening?
A subjectivity carriers provide to ensure they don't get layer trapped. Layer trapping is when the carrier above another in an excess tower gets more premium in the price per mil than the layer below them. Normally layers should be a 40% to 80% relativity of the price per million below them in an excess tower.
My GL policy has HNOA. How do I know it is covered on the excess? There are two we ways we can check on the excess policy. What are they?
Excess policy form wording and the if listed on the underlying schedule.
What is the difference between physical damage and property damage?
physical damage is damage to the insured's vehicle property damage is damage to a 3rd parties vehicle.
What is the difference between a SIR and Deductible? How do they work?
Deductible - the carrier pays the deductible, and the insured pays the carrier back but the deductible will erode the policy limit
SIR - the insured is paying out of pocket and the carrier limit is not being eroded
Claim scenario of a $250K deductible vs SIR