Management and Organizational Studies 2275A/B Chapter Notes - Chapter 28: Uberrima Fides, Liability Insurance, Subrogation

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Insurance legislation serves a number of significant purposes, including the following: Mandating the terms that must be found in insurance contracts. Regulating the insurance industry generally by setting out licensing requirements for insurance companies, insurance brokers, and insurance adjusters. Putting in place a system for monitoring insurance companies, particularly with respect to their financial operation. The three basic kings of insurance are as follows: Life and disability insurance provides payments on the death or disability of the insured. Property insurance (also known as fire insurance) provides payment when property of the insured is damaged or destroyed through accidents. It also can cover the costs of machine breakdown. Liability insurance (also known as casualty insurance) provides payment in circumstances where the insured is held legally responsible for causing loss or damage to another, known as the third party. Insurance policies can be written so that the insured pays a deductible.