Risks
Uncertainty / possibility of loss
Risk
Intention to cheat another
FRAUD!
Covers buildings and personal belongings
Property Insurance
Fire, lightening, and internal explosion
Basic perils
bodily injury, property damage, personal injury
Liability
Risks that have a greater-than-average chance of loss
Adverse selection
this is a promise, and it may be made by the insured.
Warranty
Always pay the other person, never me aka third party losses
What is Casualty insurance
All of basic (fire, lightening and internal explosion) plus extended perils may be considered?
Broad perils
Split, combined single, per person, and aggregate?
Limits of liability
An insurance company (hint the ceding company) paying another insurance company (hint: reinsurer) to take some of the company's risk
Reinsurance
Statements on applications are considered...
occurs before the policy expiration date
Cancellation
Burglary if the property is vacant more than 60 consecutive days
Broad Peril Exclusions
notify company promptly, forward notices, assist the company, and don't assume liability
Duties after a loss
Company incorporated in another country
Alien
Adhesion (hint, contract is like glue)
Deductible
Direct or Indirect?
Types of loss
Direct - immediate damage by peril
Indirect - loss over time as a result, loss of income, cost of a rental car, living expense to live outside the home
Liability for the actions of another
Vicarious
Express, implied, Apparent??
Agent Authority
Not equal value, small premium for a large amount of coverage?
Aleatory
The right to sue an at-fault party for damages the insurer had to pay the insured
Subrogation
Replacement cost based on today's cost?
Actual Cash Value, not what was originally paid
Vintage Rolex
Damage to property of an insured, bodily injury to an insured, or bodily injury to an employee, intentional damage are considered ?
Exclusions