RMI-4224 Chapter Notes - Chapter 1: Property Insurance, Liability Insurance, Retail Loss Prevention
10 Sep 2018
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In property insurance a decrease or reduction in monetary value of some property. Law of large numbers: a mathematical principal, the larger the number of loss exposures, the closer the actual results equal the expected outcome. Elements of an insurable exposure to loss: definite loss, must be definite in time, place, and amount, accidental loss, a loss must be accidental from the viewpoint of the insured, large enough loss to cause economic distress. Reinsurers: a process involving the transfer of risk from one insurer to another. Independent agency system: exclusive/captive agency system, direct writing system, direct mail system, mass marketing. Authority of agents: express (actual) authority- expressly given by the insurer either orally or in writing. Implied authority- not specifically expressed or communicated, but is consistent with the agent fully exercising the express authority granted by the insurer: apparent authority- authority that the agent appears to have to a reasonable person, no authority. Elements of a legal contract: 1.
