RMI-3011 Chapter Notes - Chapter 6: Property Insurance, Moral Hazard, Life Insurance

• School: FSU
• Department: Risk Management/Insurance, Real Estate and Legal Studies
• Course: RMI-3011
• Professor: Daniel Zavada

Document Summary

Basic parts of an insurance contract: declarations, first part of an insurance contract, are statements that provide information about the particular property or activity to be insured. In life insurance, the first page of the policy is not technically a de(cid:272)la(cid:396)atio(cid:374)s page, (cid:271)ut it (cid:272)o(cid:374)tai(cid:374)s the i(cid:374)su(cid:396)ed"s (cid:374)a(cid:373)e, age, p(cid:396)e(cid:373)iu(cid:373), the face amount of life insurance, beneficiary, issue date, and policy number. In property and casualty insurance this includes cancellation, subrogation, requirements if a loss occurs, assignment of the policy, and other-insurance provisions. In life and health insurance this includes the grace period, reinstatement of a lapsed policy, and misstatement of age. In property and casualty insurance, an endorsement is a written provision that adds to, deletes from, or modifies the provisions in the original contract. In life and health insurance, a rider is a provision that amends or changes the original policy. Loss = amount of recovery: the fundamental purpose is to achieve equity in rating, coinsurance problems.