GMGT 2060 Lecture Notes - Lecture 51: Insurable Interest, Life Insurance, Vehicle Insurance

• School: University of Manitoba
• Department: General Management
• Course: GMGT 2060
• Professor: Alok Dua

Document Summary

1346: insurance: there are specialized rules both by common law and by statute. Insurance is a contract where you protect yourself from risk of loss. Types: house insurance, life insurance, health insurance, car insurance. Definition in its simplest terms is a method of shifting risk of loss that is a method of purchasing against the potential of loss. Not only does insurance shift the risk of loss against the person purchasing the protection, it also spreads the risk among a number of parties who have agreed to take a share in the risk. Advantages: money can be collected in advance to create a fund available to pay claims; the amount collected can be calculated so that it is related to the risk assumed. Insurance companies run on a profit basis and provide protection. Mutual companies operate so that profits are retained by policy holders.