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
Deliberate act or omission. These torts include trespass an individual enters property owned or in the possession of another without permission; conversion an individual exerts control and ...
Termination of a plan. Under federal tax law, a plan can only be terminated for reasons of business necessity. Otherwise, prior employer tax deductible contributions under the plan are ...
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 ...
Type of individual retirement account (IRA) allowed by the employee retirement income security act of 1974 (ERISA), in which contributions are paid into the bank's interest-bearing ...
Percentage of life insurance or other insurance policies remaining in force; percentage of policies that have not lapsed. The higher the percentage, the greater the persistency. Since it is ...
Insurance company program in which the beneficiary of an insurance policy is encouraged to leave the death proceeds in an account on deposit with the insurance company instead of receiving ...
Agent who is licensed and who markets and services insurance policies in a state in which he or she is not domiciled. ...
Formal process of setting aside funds on a mathematical basis to provide deferred income benefits. ...
Addition to a homeowners insurance policy, or other personal or business property policies, to provide extra coverage for listed articles. The standard policy has dollar limits on certain ...
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?
We're here to help.