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					               Warm Up
• What are four types of property/casualty
  insurance?
          Objective 08.02
Interpret the nature, theory, and
   different types of insurance


   PROPERTY AND CASUALTY
     & OTHER INSURANCES
              Co-insurance
• Homeowners policies require the insured
  to carry a minimum of 80% of the value of
  the home (called co-insurance) to get full
  reimbursement for a claim made.
  – Most claims are partial losses leading
    policyholders to insure a home for less than
    value since risk of total loss is low.
      Cost Factors of Property
             Insurance
• Limit of coverage for property
• Location of property – fire district, city,
  county, state
• Structural material - brick, block, frame
• Previous claims filed
• Company
   FLOOD & EARTHQUAKE

• NOT COVERED UNDER HO POLICY
 – Must buy separate flood insurance coverage
 – Must buy separate earthquake coverage
            Co-Insurance Clause
              * Supplemental*
• In property insurance, there is a high probability
  of a partial loss claim. The insurance policy
  requires actual value of property be insured.
• Co-insurance requires an insured to cover a
  minimum of 80% of the value of the property
• If less than 80%, the claim amount is reduced at
  the time of payment.
• Example: Insuring a $100,000 home for
  $50,000 because the premium is cheaper and
  chances are there will ever be a total loss.
                  Marine Insurance
                  *Supplemental*
• Covers property exposed to perils of sea
  transport:
  –   The vessel
  –   The cargo
  –   Other property
  –   Liability for the vessel
• One of first types of insurance covering ancient
  traders in the Mediterranean Sea.
• The term “underwriter” coined from the process
  of insuring the ships and cargo.
              Inland Marine
             *Supplemental*
• Covers personal property that is being
  transport over land
• Transportation methods include:
  – TRUCK
  – TRAIN
  – AIRPLANE
• Also covers property such as jewelry, furs,
  fine arts, musical instrument etc wherever
  located and during their transport.
        Fidelity and Surety Bonds
             *Supplemental*
• An insurance policy against a financial
  loss due to dishonesty
  – Pays the employer money in the case of theft
    by employees
  – Guarantees the honesty of employees who:
     • Handle large sums of money
     • Have access to customers money or assets

  – Example: A company that cleans offices after
    hours might have a fidelity bond.
             Lloyd’s of London
              *Supplemental*
• An insurance company that covers unique
  property and liability risks that are difficult
  to insure.
• Examples:
  – An opera singer’s vocal chords
  – Life insurance on insured with extremely risky
    occupations
  – Comprehensive and collision auto insurance
    on drivers with numerous tickets and
    accidents.

				
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posted:9/25/2012
language:English
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