Underwriting agreement indemnity clause

Early methods[ edit ] Merchants have sought methods to minimize risks since early times. Methods for transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. The Babylonians developed a system which was recorded in the famous Code of Hammurabic. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen, or lost at sea.

Underwriting agreement indemnity clause

The Fair Market Value of an item is the dollar amount that a knowledgeable buyer under no unusual pressure is willing to pay and a knowledgeable seller under no unusual pressure is willing to accept.

Agent A licensed individual or organization authorized to sell and service insurance policies for an underwriting agreement indemnity clause company.

underwriting agreement indemnity clause

Aggregate limit The maximum dollar amount of coverage in force for a property damage policy or liability policy. This maximum amount can be figured on a per occurrence basis or as a general aggregate for the complete policy term. Agreed Value A method of loss valuation where the insured and the insurer list an agreed upon amoun- to be paid in case of loss.

This valuation method is most comm-n in property insurance when insuring valuable artwork, antiques, or classic autos. A professional appraisal is usually required.

Arbitration Clause A clause in an insurance policy that allows the insured and the insurer to each appoint an arbitrator if they cannot agree upon an appropriate claim settlement. Once the arbitrators have been selected, they in turn appoint an independent umpire.

If the arbitrators disagree, then the umpire decides which claims settlement to support. The final decision is binding. Betterment A situation that occurs in a loss when an old piece of property is replaced by a brand new item. The insured is put in a better financial position than they were before the loss occurred, and consequentially may have to pay the difference in price for the betterment.

Binder A short-term agreement that provides temporary insurance coverage until the policy can be issued or delivered. Broker A licensed individual or organization who sells and services insurance polices on your behalf.

Broker-agent A licensed individual who can act as an agent representing one or more insurers, and also as a broker dealing with one or more insurers representing your interests.

Genesis of Rules

Cancellation The termination of an in-force insurance contract by either the insured or the insurer before its normal expiration date. Claim Notice to an insurance company that a loss has occurred that may be covered under the terms and conditions of the policy.

Claim Adjuster The person who evaluates the damage caused by a covered loss and determines the amount to be paid under the policy terms. Claims Made A liability insurance policy where coverage applies to claims filed during the policy period no matter when the loss occurred subject to a retroactive inception date.

Homeowner’s insurance

Coinsurance An insurance clause that defines the amount of each loss that the company pays according to the amount of insurance carried, divided by the amount of insurance required. This basic formula relates ro a contracted percentage of coverage that must be required to prevent a coinsurance penalty.

Combined Single Limit When bodily injury liability and property damage liability is expressed as a single sum limit of coverage. Commerdallines Insurance coverages for businesses, commercial institutions, and professional organizations, as contrasted with personal insurance.

Concurrent Causation Occurs when two or more perils cause a loss. When only one of these perils is covered by the insurance policy, the court generally rules that the entire loss is covered.

Many insurance companies have reworded their policies ro clarifY that only a loss attributed ro a covered peril is indeed covered. Conditions The portion of an insurance contract that sets forth the rights and duties of the insured and the insurer.

Coverage Protection that is provided under an insurance policy. Declarations DEe Page Usually the first page of an insurance policy that contains the full legal name of the insurance company, the policy number, effective and expiration dates, premium payable, the amount and types of coverage, and the deductibles.

Deductible The amount of the loss that the insured is responsible to pay before benefits from the insurance policy are payable. Depredation The actual or accounting recognition of the decrease in value of property over a period of time according to a predetermined schedule.

Endorsement A written agreement that changes the terms of an insurance policy by adding or subtracting coverage. Effective Date The starting date of an insurance policy: Exclusion A contractual provision in an insurance policy that denies or restricts coverage for certain perils, persons, property, or locations.

Experience Modification The adjustment of premium resulting from the use of experience rating. Flat Cancellation Cancellation that takes place on the policy effective date. No premium charge is made; however, other charges i.Insurer Tokio Marine & Nichido Fire Insurance Co., LTD r Incorporated in Japan ABN 80 AFS connection with any breach by the Broker of its obligations under this agreement.

The Underwriting Agency indemnifies the Broker for all claims, damages, judgments, Subject to clause , the Underwriting Agency may. SAMPLE INDEMNIFICATION PROVISIONS Sample Indemnification provision from credit agreement commitment letter (): of Underwriting Agreement (revised January, ): Indemnification and Contribution.

International Group Standard Letters of Indemnity - UK P&I

(a) The Company Insofar as the foregoing indemnity agreement, or the representations and warranties contained in. 3. •risks attaching contracts - “losses arising under policies allocated to underwriting years •indemnity loss (after deduction of salvage and recoveries for inuring reinsurance) • loss adjustment expense (vs being covered pro rata in addition to UNL) Reinsurance Contracts ~ Clause.

Real estate terminology can be very confusing. When listening to your agent, lawyer or mortgage broker use real estate terminology while describing the real estate contract and the various clauses used during the process of buying and selling houses, does it sometimes seem like they're speaking a foreign language?

To a novice, common real estate terms can certainly seem that way. Insurance: Insurance, a system under which the insurer, for a consideration usually agreed upon in advance, promises to reimburse the insured or to render services to the insured in the event that certain accidental occurrences result in losses during a given period.

It thus is a method of coping with risk. UNDERWRITING AGREEMENT, , Morgan Stanley & Co. LLC any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (1) The liability of each Selling Stockholder under the indemnity agreement contained in this paragraph shall be limited to an amount equal .

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