Lesson 7 Part 1 - Lesson7(1): BasicPropertyandLiability...

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Lesson 7 (1): Basic Property and Liability  Insurance Contracts
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Common Elements of Insurance  Contracts Declarations Insuring Agreement Deductibles Definitions Exclusions Conditions Riders
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Standardized Insurance Policies -  Why? More economical to print and maintain Eases the development of rates - given a standard coverage set Loss and claim data of different companies can be combined to provide more credible data Meaning of standardized policies becomes known to attorneys, courts, insurer’s employees, and consumers
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Standardization of Contracts Not all US policies are ‘standard’ Personal and Commercial policies are generally standardized – variations are found The larger commercial policies can be “manuscript” but based on standard clauses Many international policies are standardized too Several Spanish-language (South American) policies are translations of US policies Austrians use standardized HO and Auto policies
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A NON-Exhaustive List of Questions to Ask Is the property / event / liability covered? Is the person sustaining the loss covered? Is the loss caused by a covered peril ? Do any exclusions apply? Are there any special / sufficient limits or penalties ? Do any deductibles apply? Are there any territorial restrictions? Did the loss occur during the policy period ?
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Basic Parts of an Insurance  Contract -  Declarations Personalizes the insurance contract to the insured What makes this contract different than others issued? Usually first page of an insurance contract
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This note was uploaded on 10/08/2011 for the course FINANCE FINANCE taught by Professor Don'tknow during the Spring '09 term at American Internation College.

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Lesson 7 Part 1 - Lesson7(1): BasicPropertyandLiability...

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