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03.06. Liability Deductibles and Self-Insured Retentions

Home Get App Take Quiz Create Self-insured retention (SIR) a dollar amount specified in an insurance policy that the insured must pay before the insurer will make any payment for a claim sometimes used in place of deductible in liability policies (since deductible isn't commonly used) Reasons for limited use of liability deductible control of claims: insured may not report seemingly minor incidents until the situation escalates little reduction in premium: liability losses tend to be larger; deductible doesn't apply to defense cost anyways recovery from the insured specialty liability policies: more common for those (risk control) Deductible vs SIR deductible pays first-dollar (incl defense cost) and then recovers full policy limit is payable on top of SIR SIR usually require very strict reporting of potential large claims SIR often paired with drop-down umbrella

Author COC2 ID 208376 Card Set 03.06. Liability Deductibles and Self-Insured Retentions Description Liability Deductibles and Self-Insured Retentions Updated 2013-04-06T14:15:03Z Show Answers