Insurance Flashcards
Purpose of insurance
Office is system of providing compensation to those who suffer loss
Pooling of risks
A small contribution is pooled by members in the case that if one person suffers losses they Maybe reimbursed
Subrogation
When an insurance company pays out compensation against it clean, the money they pay out teks please of the article damage
Proximate clause
This deals with anything destroyed within a proximity covered by the insurance company
Indemnity
designer Insurance principle by which the policyholder is compensated for the loss incurred
No profit: you are expected to be compensated but will not receive a profit
Main types of insurance policy
Life insurance
- Whole Life policies
- endowment policies
Non life insurance
Marine insurance
It is used by those involved in shipping, it covers the loss of, or damage to, ships
Hull Insurance- covers the vessel
cargo insurance- covers the cargo
