Special Risk Insurance
Definition of "Special risk insurance"
Transfer of highly individualized loss exposures that is not based on the usual pooling principles of insurance such as risk identification and classification selection. Rather than setting up an insurance pool of standard risks, the underwriter accepts responsibility for a unique or special risk. Some examples would be insurance by Lloyd's of London underwriters for athletes, artists, and entertainers; insurance on Betty Grable's legs; or insurance for dangerous scientific experiments or moon travel.
Popular Insurance Terms
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Payment for coverage that remains throughout the same premium-paying period. ...
Primary responsibility for overseeing the insurance industry that has rested with individual states since 1945, after Congress passed the MCCARRAN-FERGUSON ACT (PUBLIC LAW 15). In addition ...
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Structured product designed to meet specific needs of the insured that may involve any of the following funding arrangements: loss portfolio transfers in which the self-insurer transfers ...
Same as term Excess of Loss Reinsurance: method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the re-insurer pays the amount of the ...
Section of the Internal Revenue Code that provides for SIMPLIFIED EMPLOYEE PENSIONS (SEP). ...
Single policy covering all insurable property of specified type s) at all locations of an insured business. The form is appropriate for the business that has several locations. There are ...
Term used in the reinsuring of disability income insurance policies in that, after an extended period of time expires (in addition to the elimination period found in the disability income ...
Comments for Special Risk Insurance
Does special risk home ins cover flood
Apr 06, 2018 20:35:41Hey, Francisco
That's a great question... with no simple definitive answer.
The whole concept of special risk insurance is to protect assets from specific risks common to specific business and activities not covered by the ordinary homeowner's insurance policy and yes; flood is not typically covered by homeowner's insurance. However, because of climate change, flood has become something so common in the United States - independently from state and proximity to the shores and body of water - that Flood Insurance became an insurance of its own. So, since it's not an uncommon risk, it'll be hard to find a special risk insurance policy that covers flood. The insurance company will most likely tell you to buy their specific flood insurance. But who knows... maybe one or another might include it if the area is reaaaally unlikely to get flooded, like the top of a mountain or something.
Hope we helped!
Apr 13, 2018 10:25:47Have a question or comment?
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