RPLU 11 Employment Practice Liability
Back Pay - ✔️✔️The monetary relief to reimburse wages and/or benefits lost as a
result of unlawful discrimination or wrongful termination;; Wages the employee would
have earned but for the unlawful treatment by the employer minus any amount the
employee was able to earn in the interim
Americans with Disabilities Act ADA - ✔️✔️A federal statute that protects disabled
(physical or mental) individuals from employment discrimination and requires employers
to offer reasonable accommodations to employees with disabilities; Prohibits
discrimination in hiring, firing, recruitment, promotion, pay, benefits, conditions; Prohibits
retaliation; Applies to employers with 15+ employees for 20 weeks in current or
preceding year; Strict liability, no proof of discrimination or negligence required;
Possible relief/potential damages are Hiring, reinstatement, promotion, Back pay, Front
pay, Attorneys' fees, Injunctive relief, Liquidated damages; Enforced by EECO
Affirmative Defense - ✔️✔️An explanation for a defendant' actions that justifies the
defendant's behavior and provides an effective defense
Affirmative Action - ✔️✔️The proactive measures an employer takes to recruit, employ
and advance protected classes of employees
Age Discrimination in Employment Act ADEA - ✔️✔️A federal statute that protects
people age 40 and above from employers' discriminatory practices based on their age;
Prohibits discrimination in hiring, firing, recruitment, promotion, pay, benefits, conditions;
Prohibits retaliation; Applies to employers with 20+ employees; Possible relief/potential
damages are Hiring, reinstatement, promotion, Back pay, Front pay, Attorneys' fees,
Injuctive relief, Compensatory and punitive damages; Enforced EEOC
Aggregate Limit - ✔️✔️The maximum amount the insurer will pay within a specific
policy period for all of the claims incurred under an insurance policy
Alternative Dispute Resolution ADR - ✔️✔️The methods, including mediation and
arbitration, of settling disputes by means other than court trial that are typically less
costly and more expeditious than the litigation process
Arbitration - ✔️✔️A method of alternative dispute resolution that allows the disputing
parties to present arguments and evidence to an independent and impartial third party
(arbitrator) whose decision is usually binding
Baby Boomers - ✔️✔️Those individuals born during the post-WWII period of increased
birth rates starting in 1946 and ending in 1964
,Base Rate - ✔️✔️The rate per unit of insurance that is based on criteria specific to a
particular line of coverage and that is a component of a PLI rating plan used to
determine PLI premiums, before premiums are adjusted for the limit of liability and other
considerations
Bona Fide Occupational Qualification BFOQ - ✔️✔️A job requirement that permits an
employer to discriminate legally based on sex, age, religion, national origin, or physical
or mental condition - The requirement must be carefully justified and based on actual
job needs not stereotypes
Claims Made - ✔️✔️A form of liability coverage that is triggered if (1) an event occurs
after the retroactive date but before the termination of coverage and (2) the claim is
made against the insured while the policy is in effect
Claims Made and Reported - ✔️✔️A form of liability coverage that requires that the
claim not only be made but also reported to the insurer during the same policy period
Class Action - ✔️✔️A lawsuit that authorizes a single person or small group of people
to represent the interests of a larger group
Collective Bargaining Agreement - ✔️✔️An employment agreement entered into by an
employer with a group of employees
Commercial General Liability Insurance CGL - ✔️✔️A type of insurance that provides
coverage for commercial risks for losses arising out of business operations involving
bodily injury and property damage, except those specifically excluded, including
professional services - Note May also include advertising injury/personal injury
coverage
Common Law - ✔️✔️The body of law established by the courts in earlier cases
(precedents) rather than statutory law written by a legislature - Also called case law
Compensatory Damages - ✔️✔️The costs that are awarded to claimants for losses
they incurred and that include both special damages (specific, out-of-pocket costs) and
general damages (costs for pain and suffering) - Note Caps may limit the amount
payable
Conciliation - ✔️✔️The efforts by a third party to improve the relationship between two
or more disputants
Consent to Settle - ✔️✔️A policy provision that requires the insurer to obtain the
insured's consent before offering to settle claims made under a duty to defend policy -
, Note In a duty to pay policy, the insured must obtain the insurer's consent before
entering into any settlement
Constructive Discharge - ✔️✔️A type of termination of the employment relationship in
which the employee quits, but the employer is liable as if wrongful termination occurred
because the employee was forced to resign due to intolerable working conditions
Deductible - ✔️✔️The portion of a loss that the insured must bear and that may apply
to the indemnity payment, defense costs, or both - Note The insurer typically pays the
loss and then collects the deductible from the insured
Defense within Limits - ✔️✔️The policy provision indicating that any legal defense
costs the insurer incurs in defending the insured against a claim under the policy will be
deducted from and reduce the policy's coverage limits
Directors and Officers Liability Insurance (D&O) - ✔️✔️The insurance coverage that
protects the directors and officers of corporations, and sometime the entity, against
legal judgments, settlements, and related expenses resulting from allegations of
wrongful acts of directors and officers committed in their individual capacities
Discrimination - ✔️✔️The unfair treatment or denial of opportunity or privilege because
of an individual's race, age, sex, nationality, religion, disability, citizenship, or other
protected class
Disparate Impact - ✔️✔️A category of employment discrimination in which an
employer's actions, practices, or standards, although seemingly neutral, had an adverse
effect on the employment opportunities of a protected class - Note Intent to discriminate
is not necessary for this type of employment discrimination to ccur
Disparate Treatment - ✔️✔️The intentional discrimination in employment against an
individual or group in a protected class - Note An intent to discriminate is a necessary
element in this type of employment discrimination and may be shown by direct evidence
or inferentially by statistical, anecdotal, and/or comparative evidence
Dual-Filing - ✔️✔️A working agreement under which a charge of discrimination that is
(1) covered by both an EEOC-enforced statute and an FEPA law or ordinance and (2)
filed with either the EEOC or FEPA is filed with both agencies under both laws
regardless of which agency receives it
Employment Benefits Liability Insurance (EBL) - ✔️✔️A type of insurance covering
negligent or unintentional errors and omissions that occur in the course of administering
employee benefit plans and that is usually written as an endosrement to a CGL polciy
