Nothing on this site shall be considered legal advice and no attorney-client relationship is established. Read More Overview An Indemnification clause acts an inter-party insurance policy, shifting risk and liability between the parties.
Accident-year Basis The annual accounting period, in which loss events occurred, regardless of when the losses are actually reported, booked or paid. Includes payments for defense attorneys, medical evaluation of patients, expert medical reviews and witnesses, investigation, record copying, etc.
Annual Aggregate Limit claims made The maximum amount the carrier will pay for all claims arising from incidents that occurred and were reported during a given policy year. Annual Aggregate Limit occurrence The maximum amount the carrier will pay for all claims arising from incidents that occurred during a given year of insurance.
Assessability A policyholders obligation to pay additional money, in excess of premiums, to cover past company losses for which reserves have proven to be inadequate. Trust arrangements and joint underwriting associations are generally assessable Assets All the property and financial resources owned by an insurance company.
Admitted Assets are those assets that are liquefiable to raise cash to pay claims. Non admitted Assets are assets, such as real estate other than home officefurniture, and other equipment that are not liquefiable.
Bundling The practice of grouping several individual procedures or services together for the purpose of paying for them as one package.
Claim A written notice, demand, lawsuit, arbitration proceeding or screening panel in which a demand is made for money or a bill reduction. Claim Severity Refers to the amount of financial liability resulting from settling a claim.
Trends in claims severity on a specialty-by-specialty basis are important factors in setting rates each year.
Claims Reserves claims-made policy Funds set aside to satisfy those claims that have been reported to the company but not yet resolved or paid. Claims-Made Coverage The most common type of professional liability coverage available, it provides protection for claims that occur and are reported while the policy is in effect coverage period.
Within the conditions of a claims-made policy, a claim must be reported to the carrier in writing by the insured. Tail coverage, or a Reporting Endorsement, provides coverage for claims that occur during the coverage period but are reported after the policy terminates.
Claims-Paid Coverage Under a claims-paid policy, premiums are based only on claims settled during the previous year and projected to be settled in the coming year.
Many claims-paid policies are assessable for a number of years, or even indefinitely, after a physician has terminated the policy. Composite Rate A composite rate is a unique component of claims-made insurance coverage.
Composite rates are used by actuaries to calculate premiums in specific cases in which the future claims risk has been significantly reduced or increased. Date of Incident The date on which a situation of alleged malpractice took place.
Deductible franchise or quota share Provides that the insured and the insurance company split all costs within the deductible amount, such as on a basis.
Deductible straight Provides that all loss payments are reduced by the amount of the underlying deductible with no other considerations. The policy will be completely liquidated, even if the litigation is in progress.
Outside — Other companies will pay all costs of defending a lawsuit, including the costs of your defense counsel selected by the Company. The payment of defense costs does not reduce your limits of coverage.
Dividend A partial return of premium to policyholders. Domiciled Refers to the state in which an insurance company receives a license to operate.However, if the indemnification covers direct claims based on breach of the agreement, the indemnifying party should ensure that any limitation of liability on damages for breach of the agreement also applies to these indemnification-related direct damages (see Practice Note, Indemnification Clauses in Commercial Contracts: Indemnities for .
Some of these clauses include: blanket hold harmless, indemnification, and breach of warranty. If there is any question or doubt about the language in the agreement/contract send it to your. Depending the action of various clauses, different forms of clause can occur such as noun clause, prepositional clause, adjecti ve clause, adverbial clause and so on.\nExample of clause.
BEAZLEY PRIVATE EQUITY INSURANCE POLICY. CONTENTS.
SCHEDULE 1. INSURING CLAUSES 2.
Lloyd’s underwriting members of Lloyd’s syndicate and which are managed by Beazley has paid, or agreed to pay, as indemnification of or officers, which results directors.
Private equity firms use transaction liability insurance to manage the risk inherent in mergers and acquisitions. Representation and warranty (R&W) insurance is a type of transaction liability insurance that covers the risk of a target company’s seller breaching representations and warranties in the applicable securities purchase agreement.
All Holders proposing to distribute their securities through such underwriting shall (together with the Company) enter into an underwriting agreement in customary form with the managing underwriter selected for such underwriting by the Company.