Insurance-Property Basics

Front

INSURABLE INTEREST

Back

person would suffer a financial loss due to a covered peril

Front

LOSS RATIO

Back

measures success of insurance company. How much paid in claims vs premiums earned (expenses/overhead not considered)

Front

PROPERTY INSURANCE

Back

(first party coverage)-only pay for damage to policy holder's property

Second party-insurance company

Front

LIABILITY INSURANCE

Back

(casualty/3rd party insurance)-pays for bodily injury or property damage to OTHERS that the policy holder is legally liable for or responsible for the injury/damage

Front

NAMED INSURED

Back

person, business, entity (LLC, Corp) named on declarations of policy

Front

FIRST-NAME INSURED

Back

listed first on dec page when more than one named insured-higher level of duty (request changes, pay premiums, receive funds)-typically comercial

Front

ADDITIONAL INSURED

Back

typically auto lease-an insured leases auto-manufacturer owns vehicle, but lease lets insured use-auto manufacturer listed as additional insured

Front

APPRAISAL

Back

process agreed to in conditions of policy (ONLY PROPERTY)-when insurer and insured don't agree on value of amount to be paid-each get appraiser within 20 days, those two get umpire appraiser (split cost)within 15 days-when 2/3 agree, that is what insurer will pay

Front

PRO RATA

Back

When two policies cover same property-prevents overpaying on a claim-each company pays part of loss based on % of total amount insurance policy provides

policy limit 1/total limits of all policies

x loss=

payment

Front

CONTRIBUTION BY EQUAL SHARES

Back

if two policies cover, all insurers pay equal amounts up to the limit of the policy with the smallest limit