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These two modules are covered in one book:
Fundamentals of Liability Insurance
Commercial General Liability (CGL) Insurance: Overview

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A newly-updated edition of module 1/2 – Fundamentals of Liability Ins/CGL Ins. Overview – will soon be available for purchase. Please note that the exam on the current version of this module will only be available until 10/15/12. Exams after that date will cover the updated curriculum.

The discussion of CGL in module C-02-CGL lays the groundwork for this module that introduces the purpose and sources of Professional Liability Insurance and the elements of negligence claims. The module helps the student recognize the main components of PLI policies and understand the scope of their coverage, including who is covered and where coverage applies. It describes the types of damages or losses covered, how defense is covered, and an Insurer’s duty to defend. The module explains how various components of PLI policies shape coverage, including policy conditions, exclusions, policy limits, deductibles and retentions. The rationale for claims-made coverage, various types of claims-made policies, what constitutes a claim, when a claim is made, and triggers for claims-made coverage are also explored. The module reviews the importance of the application process, critical factors considered in underwriting a potential insured, and how risk management activities impact the underwriting process. The module also addresses how to coordinate PLI coverage with CGL coverage - recognizing key factors for analyzing and coordinating coverages, and key causes of gaps and overlaps.

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The key to Financial Analysis is an understanding of financial reporting for public companies. This module begins with a discussion of characteristics of public companies and their classification according to market capitalization. It discusses regulatory bodies and various financial reporting requirements, such as the Securities & Exchange Commission, Financial Accounting Standards Board and Generally Accepted Accounting Principles. Preparation and interpretation of financial statements and auditors’ notes are addressed. The material discusses the structure, purpose, and components of the financial statements, including Balance Sheet, Income & Expense Statements, Cash Flow, and Stockholders’ Equity, and how to best analyze the information contained in those documents. The material addresses how to analyze public company financials, value and profitability, effectiveness/efficiency, and financial strength and solvency. The module concludes with analysis of financials for Initial Public Offering, other start-ups and private companies.

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The exam based on the updated edition of this module is now available!

Reinsurance plays a significant role in the insurance industry and this module starts with a review of its fundamental concepts, its history, and role in the industry. From there it discusses the relationship of Insurer, Reinsurer, and, in some cases, the Retrocessionnaire, and the differences between the broker and direct reinsurance markets. The global reinsurance market and its various segments, including the admitted/non-admitted, offshore, and London/Bermuda markets, are reviewed. The functions of facultative and treaty reinsurance agreements, their relative advantages and disadvantages, and the various types of treaty arrangements, such as automatic and semi-automatic, are analyzed. The module explores the characteristics of proportional and non-proportional reinsurance, their pricing, and different forms utilized in reinsurance. Part of the module is dedicated to reinsurance contract language and common articles critical to the analysis of reinsurance proposals. Current trends and emerging issues, including assessment of a reinsurance company’s solvency, are also addressed.

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A newly-updated edition of module 5 – Professional Liability Reinsurance – will soon be available for purchase. Please note that the exam on the current version of this module will only be available until 10/15/12. Exams after that date will cover the updated curriculum.

The purpose of this module is to cover the basic concepts involved in the claims process across all disciplines of Professional Liability Insurance (PLI). Correct claims notification and recognition of potential claims are important aspects. The module describes important facets of the process, including managing policyholder relationships, communicating potential coverage issues, the reserving process, including how and when, for both the indemnity and expense portions of the claim. The module addresses litigation management issues, such as litigation management investigation and the use of monitoring and/or coverage counsel in the course of the litigation process. This module concludes with information on how to settle PLI claims – case management strategies, objectives in claims settlements, settlement and negotiation techniques, and settlement agreement components.

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The basic concepts of Medical Professional Liability Insurance (MPLI) - what it is, who needs it and its history since the mid-1970s – are provided in the introduction to this topic. The module analyzes the use of claims-made versus occurrence policy forms, and basic rating considerations in MPLI. The module reviews the different forms of MPLI utilized for hospitals, physicians, surgeons, dentists, and allied professional employees. Issues impacting the liability of healthcare facilities - charitable and governmental immunity, captain of the ship, borrowed servant - and how they affect vicarious liability exposures are addressed. Basic underwriting and rating considerations for Hospital Professional Liability (HPL) and Physicians Professional Liability (PPL), and their policy forms are reviewed. The final topics explored are roles of and processes found in MPLI or healthcare risk management, clinical risk management and quality assurance.

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This module begins with the fundamentals of Directors and Officers (D&O) Liability, its definitions and history. The importance of personal liability as it relates to directors and officers and the coverage provided under D&O policies is explained. Major securities and employment laws and statutes that create liability for directors and officers, duties of directors and officers, and the business judgment rule are explained. The principle of indemnification is key to D&O liability, so types of indemnification are identified and compared, and advancement and defense are also discussed. The material outlines major types of D&O claims and claimants in securities suits, derivative actions, and other actions. Major areas of the underwriting process are summarized, including differences between D&O liability and other types of PLI are summarized. The module concludes with the D&O claims management process, interaction between the Insurer and Insured’s counsel, and allocation issues, particularly relating to entity coverage.

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10% discount to purchase the set.

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This module addresses issues related to D&O exposures and insurance for public entities and financial institutions in more depth than the D&O Introduction (C-08-DO) module. Important elements of the underwriting process, including financial statement analysis, critical company and industry factors, composition and operation of the Board of Directors, are reviewed. The module identifies D&O policy and coverage issues, such as Side A, B, and C coverages, other insuring agreements, key exclusions, clauses and conditions, and the importance of definitions. The use and features of Excess D&O (delineating the differences between primary and excess D&O), Side A Difference-In-Conditions (DIC) Coverage, and Independent Directors Liability policies are also described. Unique types of claims made against Financial Institution Directors and Officers and statutes that specifically govern Financial Institutions are reviewed. The module concludes with review of current and potential issues and trends involving D&O Liability and the underwriting cycle.

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The Private/Non-Profit Directors & Officers Liability module begins with a brief overview of the purpose of D&O coverage. It provides a summary of the duties of directors and officers and contrasts the duties, liabilities and claims of Private/Non-Profit companies and their directors and officers versus those for public companies. The module explains volunteer protection acts and how they impact Private/Non-Profit D&O risks. The underwriting portion of the module includes a review of sample applications, key factors in underwriting these types of risks, how exposures are rated, and utilization of premium modifications. Key policy sections and provisions and unique features of these types of policies are reviewed. Coordination of D&O coverage with other professional liability policies and the use of excess D&O policies are addressed. Current and potential issues and trends are also discussed.

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This module begins with an overview of Employment Practices Liability Insurance (EPLI) and the various factors that can affect the climate for EPLI exposures and losses. It delineates and explains the various EPL exposures brought about by discrimination, wrongful termination, harassment and retaliation. The module outlines current workplace torts and new types of EPL claims on the horizon. Federal and state laws that govern employment practices are enumerated. Key factors impacting the rating and underwriting of EPLI, key policy provisions and nuances in EPLI policies are reviewed. Loss control techniques and components of effective EPL risk management programs are also outlined.

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A newly-updated edition of module 11 – Employment Practices Liability Insurance – will soon be available for purchase. Please note that the exam on the current version of this module will only be available until 10/15/12. Exams after that date will cover the updated curriculum.

The discussion of Fiduciary Liability Insurance begins with a discussion of the purpose and history of ERISA, factors leading to its passage, and how it has affected the PLI insurance industry. The module defines fiduciaries and their guidelines under ERISA, the basic requirements for ERISA plans, and different types of plans that have arisen. Important documentation that an underwriter should review and consider in the underwriting process are identified. Fiduciary Liability is compared with other types of PLI, avoiding areas of duplication of coverage, and advantages and disadvantages of stand-alone policies versus packaging of the various coverages. Trends in the types of claims and lawsuits and current markets are analyzed. There are discussions of several aspects of Fiduciary Liability claims - exposure to claims, relative exposures presented by defined benefit and defined contribution plans, and whether exposure to claims may be linked to failure to comply with the ERISA standard of conduct. The module outlines underwriting considerations for Fiduciary Liability and how corporate governance may mitigate a company's exposure to Fiduciary Liability claims.

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The exam based on the updated edition of this module is now available!

This module will increase the student's understanding of Fidelity & Crime (F&C) exposures for commercial and governmental entities by identifying the types of white collar crimes and losses that are incurred by different types of organizations. The module differentiates F&C from other types of liability insurance and describes the development of this line of coverage. It explains commercial crime policies and coverage forms, including the eight insuring agreements of ISO commercial crime policies. The module analyzes the employee theft insuring agreement and policy provisions included in commercial crime policies. It further explains the underwriting process for F&C coverage, including how to analyze information in applications and supplementary documents found in a typical underwriting submission and how to coordinate F&C coverage with other coverages. A sample rating mechanism is also presented. The module explores how to identify and assess appropriate loss control measures for specific types of crime perils. The module concludes by explaining the types of issues companies and governmental entities face and trends affecting these exposures in the marketplace.

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This module gives learners a better understanding of Financial Institution (FI) Bonds, how they differ from PLI, and why they are so important to Financial Institutions. It identifies the historical development of FI Bonds, types of exposures Financial Institutions face today, and kinds of losses they experience. There is a discussion of insuring agreements, standard forms, conditions and limits, differences between Standard Form 24 and other standard forms and forms used to insure credit union risks. It explains various additional/optional coverages that may be purchased. The importance of the information found in the application and other supplemental information in analyzing exposures are identified, as are key factors used in determining premium. The module discusses risk management techniques, including components for physical and data security. It also addresses how underwriters should assess control systems and risk management. After reviewing the unique aspects of the FI Bonds claims management process and defense considerations, the module wraps up with a brief discussion of this product’s current issues and trends.

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The legal profession faces unique professional liability challenges and this module begins by explaining the need for Lawyers Professional Liability (LPL) coverage. The requirements for admission to the Bar, the role of the Bar in regulating the legal profession, elements of legal malpractice and types of legal malpractice claims are addressed. The module explains the duties of employed lawyers and specific characteristics of insurance coverage for them. The underwriting process and how to analyze important factors in assessing LPL exposures are explained. The module reviews sample LPL applications, rating worksheets, key rating considerations, and the key sections and provisions of a typical LPL policy. It describes the steps in the LPL claims management process and the particular challenges encountered in managing these types of claims. The module reiterates the importance of risk management and explains the types of risk management programs that help lawyers effectively manage their professional liability risks. The material is capped with a discussion of issues and trends affecting the LPL marketplace today.

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This module starts with a review of services provided by accounting professionals and coverage found under Accountants Professional Liability (APL) insurance policies. The material describes the general education and experience requirements for Certified Public Accountants (CPAs) and the types of opinions auditors can provide. Technical, ethical and statutory industry standards, the roles of various standard-setting bodies, such as the State Boards of Accountancy and State Societies for CPAs, and the impact of Sarbanes-Oxley on this profession are reviewed. This module recognizes the common law duties of accountants, their duties to third parties, and how these affect the types of liabilities they incur. After explaining the specific features of APL policies and the optional coverages that may be added, a sample APL policy is interpreted. The different types and unique aspects of APL claims, defense and damage elements, and trends in APL claims are explained. As a corollary to the claims issues, study of risk management for APL exposures and the importance and use of engagement letters as a key risk management tool are detailed. The module explains how client profiles relate to APL underwriting and factors considered in pricing APL. All of this information is utilized in the evaluation of a sample APL application.

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This module builds on basic concepts of the introductory module to Medical Professional Liability Insurance (C-07-MPL). It focuses on the three main segments of medical professional liability - hospitals and healthcare facilities, physicians, and allied healthcare professionals - and introduces a wide variety of medical professional liability exposures. There is a discussion of miscellaneous healthcare facilities, in particular ambulatory surgery centers, and the special exposures they represent. The module gives long term care facilities separate treatment, exploring their evolution, history and broad spectrum of exposures. The various categories of allied healthcare professionals mentioned in the introductory module, including pharmacists, nurse practitioners, physician assistants, psychologists and social workers, are given more detailed analysis. Various types of managed care organizations, sources of their liability, and underwriting and rating considerations are explored. Hospital D&O liability has its own unique characteristics, so a chapter is devoted to the healthcare industry D&O environment, sources of D&O claims in a hospital setting, and underwriting considerations. The module summarizes medical professional liability claims, risk management, and emerging medical professional liability exposures.

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This module explores the functions of design professionals and design firms and the various types of services they provide. It explains various categories of design disciplines and types of professional liability exposures applicable to them. Pertinent legal concepts are explored, including the sources of professional liability exposures for design professionals, the impact of various legal concepts on that liability, and the types of claims they generate. The underwriting factors for design professionals, sample applications and policies, and a sample rating exercise are presented. The module details common coverage features and key sections and provisions of PL insurance policies for design professionals. Claims management issues, including key considerations in defending claims and risk management programs for design professionals are also reviewed. Current issues and trends, including emerging types of exposures and frequency and severity trends conclude the module.

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This module outlines the historical development of errors & omissions coverage for real estate professionals, their job functions, and types of services covered by these policies. It explains federal and state regulations governing the profession, education, training and licensing, and professional standards that apply to real estate professionals. The concept of “agency” is important in real estate, so the module explains the different types of agency relationships and the characteristics of non-agency and “transactional” broker relationships. Common law duties, statutory duties, the impact of material disclosure laws, and the various types of liability facing real estate professionals follow. Key provisions of policies, as well as optional endorsements and coverages, are highlighted. The module outlines typical types of claims, the claims management process, and developing claims trends. The risk management unit focuses on how risk management practices can help real estate agents and brokers manage errors and omissions risks by analyzing loss scenarios and determining appropriate techniques to manage their specific risks. The module reviews the current real estate professionals market and analyzes factors in underwriting and pricing this line of business.

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The Insurance Professionals module begins by outlining key historic events leading to the development of insurance agents’ and brokers’ liability and regulation of the insurance industry. It explains the licensing and education requirements imposed upon agents and brokers, and the various types of services they perform. The module acknowledges the purpose of Insurance Professionals E&O coverage and explains common features of these policies. The unit on underwriting explains the process and critical factors in underwriting this line of business. Learners can analyze sample applications and evaluate and rate these types of exposures. Sample Insurance Professionals policies, endorsements, and key sections and provisions are examined. The claims unit reviews the claims process, unique characteristics of Insurance Professionals’ claims, and key defense considerations. The module explores various programs that can manage these professional liability exposures and use of effective risk management techniques to mitigate them. The learner also has an opportunity to analyze various loss scenarios and determine the potential for risk management intervention. The module addresses the current market for this type of coverage and explores issues affecting its future.

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The Miscellaneous Professional Liability module identifies circumstances that have created a need for these service providers to purchase coverage for their professional errors and omissions. It discusses the types of service providers covered and how Miscellaneous PLI differs from Commercial General Liability. Because Miscellaneous PLI encompasses a broad range of potential exposures, the module addresses its unusual underwriting challenges. The unit explains the steps required to identify the risks posed by Miscellaneous PLI and possible strategies for rating it. After studying key provisions of Miscellaneous PLI policies, different scenarios of coverage attachment are analyzed. There is review of how to coordinate CGL and PL coverages. The module describes the unique aspects of Miscellaneous PLI claims, managing them, and defense considerations. The module summarizes the issues currently affecting Miscellaneous PLI and challenges and solutions for addressing these exposures.

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This module explains the purpose and common coverage features of Media Professional Liability Insurance. It describes the functions of professionals and organizations needing Media PLI to cover defamation, privacy, news gathering, errors & omissions, and intellectual property exposures. It further explains how to analyze Media PLI policies and the pertinent underwriting factors. A sample application to evaluate Media PL exposures is provided. The claims process, unique aspects of claims, and key defense considerations are described. This is followed by a discussion of risk management and the various programs that can help media professionals manage their professional liability exposures. The module concludes with analysis of the Media PLI marketplace and current issues affecting media professionals.

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This module describes the scope and importance of cyber activities in today’s world and defines activities and transactions that create cyber risks. It identifies key statutes and regulations affecting cyber liability and the first-and third-party risks associated with cyber businesses, particularly third party liability associated with business and technology service providers. Coverage available under “traditional” policies - CGL, Fidelity/Crime, and Professional Liability – and potential gaps in coverage are reviewed. The module describes key provisions in cyber policies, variable provisions, and pricing considerations. Unique factors associated with claims and risk management, loss control techniques, and critical components of cyber risk management programs are identified. The module concludes by addressing current issues affecting cyber liability risk management and emerging types of exposures and claims.

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