AFM231 Chapter Notes - Chapter 28: Life Insurance, Insurable Interest, Liability Insurance
11 Jul 2018
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Document Summary
The most important elements of what you need to remember from this chapter are the basic principles that govern insurance law and how they are different from contract law in general. You should also gain an understanding of the role insurance can play in a risk management program. We expect you to have read the entire chapter and be very familiar with the types of policies and the rights and obligations of the insurer and insured. 692-696 (703-707), which are critical to your understanding of insurance. The insurer decides whether to settle or fight. If you take control, the insurer will step away and all costs become your responsibility. Insured one who buys insurance coverage: policy contract of insurance, premium price paid for insurance coverage, deductible part of loss for which insured is responsible. Indemnity insured cannot come out better of policy if it needs to be exercised; can only break even.
