1. What is insurance?: protection against financial loss
2. what is a premium: a scheduled amount to be paid for an insurance
policy.
3. What are premiums used for: premiums are collected into a "pool" or
"reserve to pay out claimants when needed.
4. how can insurance companies afford to pay for an individuals
catastrophic loss?: the insurer collects premiums from all policy holders
and uses them to pay out the claims of a few.
5. what is Indemnity: payment for damages, that is not more or less
than the amount caused by the damage.
6. principle of idemnity: insurance will pay no more or less than the actual
financial loss suffered
7. indemnification may also include: repairs to
,property reimbursement for additional living
expenses
rental cars and hotels
costs directly associated with a loss
8. 4 Parts of Legal Contract: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
9. legal contract - agreement: mutual intent by offeror and offeree
10.six special characteristics of insurance contracts: 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
,11.what kind of contract is an insurance policy?: Personal contract
12.what is a contract of adhesion: the insured must accept the entire
contract with all of its terms and conditions
13.Utmost Good Faith: An obligation to act in complete honesty and to
disclose all relevant facts.
14.Aleatory Contract: a contract where the values exchanged may not
be equal but depend on an uncertain event
15.Unilateral Contract: insurance agrees that they must pay in event of
a claim. the insured can stop paying premiums at any point.
only the insurer has promised to perform an action.
16.Conditional Contract: A type of an agreement in which both parties
must perform certain duties and follow rules of conduct to make the
contract enforceable.
, 17.Acronym for the four sections of an Insurance policy:
DICE D - declarations page
I - Insuring
Agreement C-
Conditions
E - Exclusions
18.Decelerations section: Always the first section - establishes the
following Names of both parties
Policy number
Location and description of insured
item Dates of the policy
Amount and limit of
coverage Deductible
Premium
19.Definitions section: Defines terms used to write policy including
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NurseFerian. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
