Pollution Exclusion
Liability insurance exception for pollution coverage that is not both sudden and accidental from the insured's standpoint. As a result of the damage suits from such incidents as the chemical pollution at Love Canal, insurance companies began to modify pollution coverage in their liability policies in the 1970s. First, companies changed coverage to apply only if pollution was "sudden and accidental," rather than "gradual." But some courts ruled that "sudden and accidental" could encompass several years of pollution problems. Consequently, the insurance services office (ISO) introduced a new comprehensive general liability insurance (CGL) policy in 1985 (replaced today by the commercial general liability form) that excluded coverage for nearly all types of pollution damage, leaving only limited liability coverage for pollution originating away from an insured's premises.
Popular Insurance Terms
Arrangement of financial affairs such that a family member who is in a lower income tax bracket receives income that another family member would otherwise have received (thereby reducing ...
Value in life insurance policies that entitle the insured to these choices: to relinquish the policy for its CASH SURRENDER VALUE. (Note that in the beginning years the cash value may be ...
Factor considered in determining amount of life insurance to purchase in order that funds will be available to pay for a child's education expenses in the event of the premature death of ...
Contribution whose purpose is to increase funding of underfunded pension plans. It is part of the calculation that is made to arrive at the plan's minimum funding requirement. Usually a ...
Insurance company incorporated according to the laws of the state in which a risk is located and the policy issued. The insurance company is domiciled in that state. ...
Professional designation awarded by the American College. In addition to professional business experience in financial planning, recipients are required to pass national examinations in ...
Coverage that guarantees bond holders against default by a municipality. This form of financial guarantee was introduced in the early 1970s and became a runaway success. Municipalities ...
Same as term Associate in Risk Management: professional designation earned after the successful completion of three national examinations given by the insurance institute of America (IIA). ...
Type of mutual insurance company that requires a substantial initial premium payment. After the initial premium payment is made, future premium payments required will be paid from the ...
Have a question or comment?
We're here to help.