Insurance Flashcards
What is insurance? What are the three basic kinds of insurance?
Life and Disability Insurance
Property Insurance (also known as fire insurance)
Liability insurance (also known as casualty insurance)
A contract.
Define Insurable Interest
A financial stake in what is being insured
What is meant of the concept of “indemnity” it related to insurance
Reimbursement for losses.
The insured should not profit from the insured-against event, but should break even.
Explain Subrogation
The right of the insurer to recover the amount paid on a claim from a third party that caused the loss
Why does it matter that an insurance contract is a contract of “utmost good faith?”
provide all information to insurer that related to the risk of being insured. In instance where the insured fails in that duty, the insurer may choose not to honour the policy.
