Imagine you are a hospital risk manager responsible for purchasing and managing the commercial insurance and the self-insured retention (SIR) fund. You have structured professional liability coverage with a combination of SIR and commercial insurance. The SIR limits are $1,000,000 per incident and $3,000,000 yearly aggregate. In addition to the SIR, you have purchased excess coverage in the amounts of $10,000,000 per incident and $25,000,000 yearly aggregate.

Assume all policies are written on a calendar-year basis, all payouts are in the correct year, and the SIR fund and the commercial insurance carrier are financially solvent. Examples: If no claim has been paid during the year, a total of $11,000,000 per incident and $28,000,000 yearly aggregate are available.

If the first claim is settled for $1,500,000, the SIR pays the first $1,000,000, and the excess carrier pays the remaining $500,000, what is the remaining balance for the year end for the SIR and excess coverage?

What type of primary malpractice insurance policy is necessary to purchase “tail/prior acts” coverage when changing carriers?

The insurance industry is cyclical. It is characterized by periods noted as “hard” and “soft” markets. Which of the following statements is TRUE?

Which of the following are types of third-party of liability insurance?

1. General liability
2. Fire/property
3. Directors and officers
4. Fiduciary

A captive insurance company is:

An insurance policy contains what four standard elements:

A physician has a $1-million policy limit with a $100,000 per-claim deductible. How much insurance does the insured have?

 A new claim has been reported to the insurer. The claim occurred on 6/1/2012 and was reported 2/1/2013. The facility has a claims-made policy dated 1/1/2013 — 12/31/2013 with a retroactive date of 1/1/2003. Assuming the claim is for a covered loss and was not known or reported to the prior carrier at the time of occurrence, will the carrier accept the claim as being covered under the policy?