FIN 512 Chapter Notes - Chapter 2: Subrogation, Life Insurance, Property Insurance
17 Jul 2012
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Chapter 2: backdrop to insurance and insurance law. Since insurance policies are contracts, they fall under contract law and we will look at the elements of contract law. Tort law applies to private individuals for wrongs done to them by other people and it affects insurance companies as many potential wrongs can be covered by an insurance contract (this leads to negligence) The medieval era saw the establishment of guilds: groups of individuals with common goals. Merchant guilds: those involved in long-distance commerce and local wholesale trade. Craft guilds: were those in particular trades, such as bakers, brewers, and butchers. Guilds of manufacturers: those who made durable goods, such as textiles, military equipment, and metal ware, and these were guilds who sold skills and services such as clerks, teamsters, and entertainers. With these pools of groups, reimbursement due to losses came from a pool to which all members contributed.
