Reaccreditation

Control of Well/Operators Extra Expense Risks and Insurance

Course Details

hours
6.0
price
$99.00
This course is not subject to discount pricing.

Additional Credit Available:

Add Insurance CE
Add CPA CPE

Delivery Method: 

Self-Study

PDF Download: 

Available

Provider of Record: 

WebCE

Field of Study: 

Management Services

Last Reviewed: 

January 2017

Exam Requirements

Proctor Required: 

No

Passing Grade: 

70%

Retakes: 

Unlimited

Please note: Adding Additional Credit may change exam requirements.

Course Description
As long as there are oil wells there is a potential for well control problems. Fortunately, insurance exists to address the monumental expenses that result when a blowout or other well control event occurs. Well control insurance, also known as operators extra expense insurance, is the focus of this course.

The course provides a review of the physical characteristics of a well, emphasizing the factors that can lead to a blowout and the features designed to prevent or control blowouts. The course discusses the control of well (COW) policy, also known by other names such as operators extra expense (OEE) policy. These policies are generally available to cover drilled wells, workover wells, or producing wells whether the insured is the operator or a nonoperator and provide coverage for expenses incurred in regaining control of a well after a blowout.

The course provides an in-depth review of the types of the insurance coverage available to cover the costs and expenses associate with a well blowout, including a review of the three main insuring agreements, typical conditions and warranties, and additional coverages often available by endorsement to expand or limit coverage. It also addresses the measures that can and should be taken to control or minimize the insured and uninsured expenses that will be incurred if a blowout occurs. The course concludes with a case study of an actual blowout. 

Learning Objectives
This is an intermediate level self-study course. Students who successfully complete this course will be able to:
  • identify the elements that make up the anatomy of a well and the techniques used to drill a well
  • differentiate between the two major types of blowout
  • identify the well drilling characteristics and techniques that are designed to maintain control over a well and prevent or control blowouts
  • identify the major steps involved in recovering from a blowout
  • recognize the structure of a typical well control policy
  • recognize the effect of each of the general conditions affecting a typical well control policy and the effect of common policy conditions that apply specifically to well control coverages
  • identify and recognize the coverages, limitations, exclusions, and key issues associated with control of well, extra expense and seepage, pollution, and contamination coverage
  • recognize the coverage added by the adoption of optional coverages or endorsements
  • identify the types of information and decisions necessary to complete an application for well insurance

Prerequisites
A basic understanding of commercial property and liability exposures and insurance coverage
 

CPE Field of Study

Management Services

WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

By IRMI

International Risk Management Institute, Inc. (IRMI), is the premier provider of risk and insurance continuing education and reference services. IRMI was the first publisher of reference content covering the field of risk finance in 1983 with the publication of Risk Financing, a comprehensive reference resource on all aspects of traditional and alternative market approaches. IRMI is also publisher of the first newsletter to cover the field of captives, Captive Insurance Company Reports; two comprehensive books on the subject of captive insurance; and Captive.com, the first and foremost information resource and networking center on the Internet for the alternative market. Use the knowledge you gain from IRMI CE courses with confidence, knowing they are written by seasoned risk and insurance professionals who employ diligent quality assurance standards to provide the most up-to-date, practical, and reliable information possible.