Primary Casualty
Name 3 differences between an SIR and Deductible.
What is the difference between Claims-Made and Occurrence triggers?
The difference between Claims-Made and Occurrence triggers is that Claims-Made policies cover claims that are reported during the policy period, regardless of when the incident occurred, while Occurrence policies cover claims that arise from incidents that occurred during the policy period, regardless of when the claim is reported.
What are ground up losses and what is a sign you do not have them?
Ground up losses show the loss from the first dollar and do not cap it at a certain amount (such as the retention or primary limit). If the largest losses are all exactly the retention or limit, the losses are likely not ground up and you will need an Umbrella/excess carrier loss run to see the losses over the limit.
What are the 4 core organizations that fall under Marsh McLennan?
The four core organizations that fall under Marsh McLennan are Marsh, Guy Carpenter, Mercer, and Oliver Wyman.
What assists underwriters with the terms/conditions when quoting?
Specs
Name 2 GL exclusions included in the policy form.
Define Punitive Damages and where coverage can be bought.
Punitive Damages are damages awarded in some states to punish the defendant for intentional or reckless behavior. Some states prohibit the insurability of punitive damages. Clients can attempt to get around this and have coverage for punitive damages through a MFV endorsement (untested) or procure “punitive damage wrap” policies outside of the US (typically Bermuda or London) to accompany their policies and provide affirmative coverage.
Why is collateral required?
Collateral is required to secure the deductible reimbursement obligations of the insured under a policy, typically in the form of cash, trust, surety or a letter of credit, to ensure that funds are available to pay claims. Insurers take on credit risk with deductibles.
What is Bowring Marsh and why does it differentiate Marsh?
Bowring Marsh is wholesale broking units of Marsh outside the US, in casualty we typically use BM London, Zurich, and/or Bermuda. It is a differentiator for Marsh since it adds to our leverage with markets globally, allows us to access markets in those geographies without using an outside wholesaler, and we can emphasize the coordinated approach we take to the global marketplace. Since these brokers are part of Marsh, it streamlines things and ensures more control and transparency from the client’s perspective.
When should the RSM take place?
120 days prior to renewal
Name 2 types of defense treatments.
Will accept any 2 of the following:
What is rate inversion and how do you know if it's inverted?
Inversion takes place when the layer above costs more on a Price per Million basis than the layer directly below it.
What is the most common purpose of an LPM?
Provide projected losses within a specified retention amounts.
What is the typical distinguisher labeling an account either Corporate and Risk Management accounts?
The typical distinguisher labeling an account as either Corporate or Risk Management accounts is the size and complexity of the client's insurance program.
What does it mean to indemnify?
Indemnify means to compensate or reimburse someone for a loss, damage, or liability
What is the purpose of Additional Insured status?
The purpose of Additional Insured status is to provide coverage to a third party (not originally named in the policy) who may be held liable for the actions of the named insured.
Detail 3 improvements that Marsh XSellence often makes.
What is used to estimate the ultimate loss projection?
Ultimate loss projection is estimated using actuarial techniques and historical loss data to predict the total amount of losses that will be incurred over the life of a claim or a portfolio of claims.
Will also accept: LDFs
What is Marsh's reinsurance arm called and what does reinsurance do?
Marsh's reinsurance arm is called Guy Carpenter, and reinsurance provides insurance coverage to insurance companies, transferring some of their risk.
What does it mean to subrogate
Subrogation is the legal right of an insurer to pursue a third party that caused an insurance loss to recover the amount paid to the insured
Define exclusive remedy doctrine.
Exclusive Remedy Doctrine is a legal principle that limits an injured employee's right to sue their employer for workplace injuries, as workers' compensation benefits are the exclusive remedy available to them.
What is the difference between an AB form versus and Umbrella form?
AB Form: Coverage A follows form to scheduled underlying coverage, Coverage B provides coverage excess of an SIR for claims not covered by scheduled underlying but within the T’s and C’s of Coverage B.
Umbrella: Coverage subject to its own terms and conditions excess of scheduled underlying, or if excluded in the primary but not in the umbrella, excess of a SIR or retained limit.
About how long does it take most clients to reach roll-over collateral on average?
Typically between 5-6 years
What are the 5 core verbs in the Marsh waterfall?
Prevent Accidents, Optimize Structure, Protect Balance Sheet, Maximize Liquidity, Mitigate Severity
Give us a state of the market update for Primary and Excess
Freestyle!