Chapter 07 student

Chapter 07 student - Chapter Objectives Identify and...

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1 Chapter Objectives Identify and understand the basic parts of an insurance policy Explain the difference between named perils and open perils property insurance coverage Explain why exclusions are used in insurance contracts and identify the major types of exclusions Describe how the interests of mortgagees are protected in insurance policies and why the mortgagee clause gives the best protection to the mortgagee Distinguish between the actual cash value basis of recovery and replacement cost Describe the different types of deductibles and explain why deductibles are used in insurance policies Indicate why insurance companies use insurance to value provisions and explain how the coinsurance clause operates Explain what apportionment clauses are and how the prorated clause operates
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2 Major Parts of a Policy (1) Declarations (2) Insuring agreement (3) Exclusions (4) Conditions (5) Other important aspects of a policy Definitions Basis of recovery Clauses limiting the amount of recovery
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3 (1) Defining the Insured Named insured Person or organization that is ___________ __________________________________. Additional insureds
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4 (3) Exclusions Used to help define and limit the coverage provided by an insurer Policies often have very broad insuring agreements Typically exclusions are used to restrict coverage of given
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5 (3) Excluded Perils Practically all insurance policies exclude from coverage certain perils among those factors that can cause losses Examples War Vermin Earthquake (sometimes) Wind (sometimes)
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6 (3) Excluded Losses Most insurance contracts contain provisions excluding
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This note was uploaded on 02/16/2012 for the course FINA 341 taught by Professor Thompson during the Fall '11 term at South Carolina.

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Chapter 07 student - Chapter Objectives Identify and...

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