Chapter 1--General Insurance

What are the elements of a legal contract?

• Competent Parties

• Legal Purpose

• Agreement

• Consideration

What is NOT a kind of insurer?

• Foreign

• Imported

• Alien

• Domestic

• Non-admitted

What are the types of Insurers?

• Lloyd's of London

• Mutual Insurance Company

• Reciprocal Insurance Company

• Stock Insurance Company

• Risk Retention Group

What are ways that risk can be managed?

• Sharing

• Transfer

• Avoidance

• Reduction

• Retention

What are the purposes of insurance?

• Generate profit for the insured

• Transfer risk from the insured to the insurer

• Restore the insured to the same financial or economic condition existing prior to loss

• To guarantee a desired outcome

In what ways are the insurer and producer related?

• The insurer is the source of authority from which the producer must abide

• The producer is responsible for "producing" benefits, while the insurer writes the policies

• They are legally considered the same entity

• The insurer appoints the producer to act on its behalf

What is insurable interest?

• Losses may or may not be calculable

• Allows an applicant to seek insurance for any other living entity

• A relationship must exist between the applicant and the insured

• A philosophical curiosity to be debated by academics

What are legal interpretations that affect contracts?

• Concealment

• Representations

• Principal of indemnity

• Estoppel

• Utmost good faith