Unit_7Analysis_of_Insurance_Contracts_Students_Notes

Unit_7Analysis_of_Insurance_Contracts_Students_Notes -...

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UNIVERSITY OF TECHNOLOGY, JAMAICA FACULTY OF BUSINESS AND MANAGEMENT SCHOOL OF BUSINESS ADMINISTRATION INSURANCE UNIT 7 - ANALYSIS OF INSURANCE CONTRACTS OBJECTIVES Identify the basic parts of any insurance contract. Explain the meaning of an insured in an insurance contract. Describe the common types of deductibles that appear in insurance. Explain how coinsurance works in a property insurance contract. Show how coinsurance works in a health insurance contract. Explain how losses are paid when more than one insurance contract covers the same loss. Basic Parts of an Insurance Contract Declarations are statements that provide information about the particular property or activity to be insured Usually the first page of the policy In property insurance, it contains name of the insured, location of property, period of protection, amount of insurance, premium and deductible information Insurance contracts typically contain a page or section of definitions For example, the insured is referred to as “you” The insuring agreement summarizes the major promises of the insurer The two basic forms of an insuring agreement in property insurance are: Named perils policy , where only those perils specifically named in the policy are covered “All-risks” policy , where all losses are covered except those losses specifically excluded May also be called an open-perils policy or special coverage policy
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Insurers have generally deleted the word “all” from policies “All-risks” coverage has fewer gaps, and the burden of proof is placed on the insurer to deny a claim Insurance contracts contain three major types of exclusions
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This note was uploaded on 02/26/2012 for the course ECON 101 taught by Professor Adam during the Three '11 term at University of Technology, Sydney.

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Unit_7Analysis_of_Insurance_Contracts_Students_Notes -...

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