Transportation Industry Articles

Auto Risk Management

Auto Manufacturer Parts versus After-Market Parts: a Question of Quality

2001-11-10 | Robin K Olson

Many insurers and industry groups believe non-original equipment manufacturer (OEM) or after-market parts are the same quality as OEM parts, but are they truly of like kind and quality? This article examines the debate.

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Bonding Tips and Tactics: Contractor Default Insurance

2001-10-01 | Rolf A Neuschaefer

In this article, Rolf Neuschaefer examines default insurance - a recent development designed as a substitute for the traditional surety performance guarantee and discusses its shortcomings from a surety producer's perspective.

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Surety Bond Penalty Waivers in Takeover Situations

2001-07-01 | Marilyn Klinger

Courts recognize that the performance bond surety's limit of liability is the amount stated in its bond. There are a number of courts which have found that a performing surety waives its limited liability under the bond simply by taking over the principal's work. The prudent surety should, if at all possible, insist on an express limitation of liability when it takes over. However, creative arguments exist for the performing surety's liability to be limited to its bond amount, unless the surety expressly waives such limitation in writing.

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All Guarantees Are Not Created Equal

2001-07-01 | Rolf A Neuschaefer

In construction, the obvious alternative to the owner/lender assuming the performance risk is to secure some form of guarantee. This article examines some of the alternatives and highlights differences between them.

Maritime Law

Admiralty Jurisdiction: A Challenge for Even the Seasoned Practitioner

2001-05-01 | Michael A Orlando

Determining whether admiralty jurisdiction exists over a particular claim can prove extremely challenging, even for those well versed in admiralty law. This article examines the history, landmark cases, and how to determine where the baseline exists on a coastal state.

Auto Risk Management

Perceptual Diminished Value for Personal Autos

2001-04-28 | Robin K Olson

Is perceptual or psychological diminished value—the perceptual loss of vehicle market value due to an accident—covered under the personal auto policy? This article examines the debate, relevant case law, and ISO's response.

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Proactive Surety Claims Handling

2001-04-01 | Marilyn Klinger

In recent years, sureties have begun more proactive claims handling. This article explains how sureties can work with the project owner, prime contractor, bond producer, underwriter, and claims personnel so that all can be in a win-win situation after a claim.