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Commercial Liability Underwriting, 2 vols, 3d.

This third edition of Commercial Liability Underwriting has been written primarily to help student meet the current educational objectives of the Insurance Institute of America's Associate in Underwriting 63 course. Since the second edition of this text was published many changes have taken place in the commercial liability coverage area. The most important change dealt with the introduction of a new set of simplified commercial liability policies introduced in the mid-1980s. The most visible of the policy changes was the introduction of a claims-made commercial general liability policy form. In addition, the risk classification table of the Commercial Lines Manual was also revised in the mid-1980s.

The third edition of Commercial Liability Underwriting deals with the new commercial liability policies and risk classification rules. The text is not intended to be an in-depth course on policy coverages. The emphasis is on those aspects of policy coverage that are of greatest interest to underwriters and those that cause the most confusion among both insurers and insureds.

The impact of the legal form of the business ownership on underwriting is examined. In addition, the management competence, employee-employer relations and the financial condition of the company are considered in light of their impact on underwriting. The legal foundations of tort liability along with the sources and uses of underwriting information are looked at.

This text focuses on the three major commercial liability coverages auto, general liability, and workers' compensation. The emphasis is on the principles involved in underwriting these particular types of risks. A brief discussion of surety bonds and professional liability coverages is found in the last chapter.

Commercial automobile insurance is broken down into commercial automobiles, public autos and trucks, and garage risks. Garage insurance includes coverage for auto dealers, auto servicing, and parking garages.

The coverages under the CGL policy are examined with special emphasis on the claims-made form. Workers' compensation laws and benefits along with the employers' liability are considered. Compensation under federal laws such as the Jones Act and the Longshoremen's and Harbor Workers' Compensation Act are looked at. Special emphasis is placed on workers' compensation risk classification and premium determination.

The second major change in this edition is an increased emphasis on risk classification and the factors that affect the premium for each of the coverages. Improper classification of risk is a major problem many underwriters face. This text emphasizes the factors an underwriter should use to properly classify and rate a commercial liability risk.
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Author:Cross, Mark L.
Publication:Journal of Risk and Insurance
Article Type:Book Review
Date:Jun 1, 1992
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