COMMERCE 4FR3 Lecture Notes - Lecture 5: Official, Natural Person, Safe Deposit Box
13 Oct 2017
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Even covers volunteer org. like search and rescue operations for ski resorts. Liquor liability insurance: product liability insurance, errors and omissions insurance, directors and officers insurance, malpractice insurance. Claims-made policies: pay for losses after a certain date but claims are made during the policy period, eg. oil producer who is at risk for oil spills. Goals are to reduce: small claims, premiums, moral and morale hazards. Example: 9/11: 9/11 was interesting because the two planes crashed into the towers at 8:46 a. m. and 9:30 a. m. and the towers fell at 10:05 a. m. and 10:28 a. m. The insurers tried to argue that it was two separate events so there would be two deductibles but the courts decided that it was one act of terrorism. Firm must decide how much risk to retain by either: having a high deductible. Not the same as the 80% rule for the homeowners property.
