What is insurance?
protection against financial loss
what is a premium
a scheduled amount to be paid for an insurance policy.
What are premiums used for
premiums are collected into a "pool" or "reserve to pay out claimants
when needed.
how can insurance companies afford to pay for an ind...
✓ An obligation to act in complete honesty and to disclose all relevant
facts.
Aleatory Contract
✓ a contract where the values exchanged may not be equal but
depend on an uncertain event
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.
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.
Acronym for the four sections of an Insurance policy
✓ DICE
D - declarations page
I - Insuring Agreement
C- Conditions
Master01 | October, 2024/2025 | Latest update
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