Category: Blog

Profit commissions are provisions found in some reinsurance agreements that provides for profit sharing. Parties agree to a formula for calculating profit, an allowance for the reinsurer’s expenses, and the cedant’s share of such profit after expenses. Example: • If a reinsurer agrees to pay 20% of its net profit to the cedant after deducting…

This type of insurance coverage designed to protect traditional professionalse.g., physicians) and quasi professionalse.g., real estate brokers) against liability incurred as a result of errors and omissions in performing professional services. Example: • A Doctor misdiagnoses a patient’s persistent headaches as stress-related and advices rest. The patient later has a stroke and discovers that the…

Physical damage insurance is a type of insurance policy that provides coverage for damages to your vehicle caused by accidents, theft, fire, natural disasters, and other incidents. It is usually offered as part of a comprehensive auto insurance policy. Example: > If your car is damaged in an accident, physical damage insurance would cover the…

First party insurance that indemnifies the owner or user of property for its loss, or the loss of its income-producing ability, when the loss or damage is caused by a covered peril, such as fire or explosion and insurance covering loss of income suffered by business when damage to its premises by a covered cause…

P & C insurance is a type of insurance that provides coverage for your assets, such as your home, car, and personal belongings, as well as liability coverage when you’re legally responsible for damages to someone else’s property or another person’s injuries. EXAMPLE: Auto Insurance: Provides coverage for your car in case of an accident,…

Non-trucking liability is a policy that covers you if you cause damage or injury to a third party while you’re driving your truck for personal purposes. It does not provide any coverage when you are using the vehicle for business purposes or when you are hauling cargo. The insurance provides coverage for bodily injury and…

Insurance written by an insurance company not licensed to do business in a certain state or country. In US jurisdictions such insurers can nevertheless write coverage through an excess and surplus lines broker licensed in that jurisdiction. EXAMPLE: • Non- Admitted insurance can create specialty policies. They also cover higher-risk policies and ensure high-risk individuals…

Motor truck cargo insurance is a type of insurance that covers cargo while it is being transported on trucks. It is highly important for shipping companies independent truckers because they often deal with very valuable cargo. This insurance can help cover losses that may occur from accidents or thefts. EXAMPLE: Misdelivery. Damage or loss of…

A Managing General Agency(MGA) is a type of insurance agent or broker that has the authority to underwrite and issue policies on behalf of an insurer. An MGA can also perform other functions, such as settling claims, appointing retail agents, and collecting premiums. An MGA can benefit both insurers and agents by providing specialized expertise,…