tailieunhanh - Lecture Dynamic business law - Chapter 51: Insurance law

After studying this chapter you will be able to understand: What is the nature of the insurance relationship? What does the insurance contract include? How is an insurance policy canceled? What are the obligations of the insurer and the insured? What is the insurer’s defense for nonpayment? What are the types of insurance available to consumers? | Chapter 51 Insurance Law Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 51: Insurance Law 51- The Nature of the Insurance Relationship Insured Party: Party who makes a payment (a premium) in exchange for a payment in the event of damage/injury to property/person Premium: Payment on policy Insurer (Underwriter): Party who receives premiums from insured party Beneficiary: Person who receives insurance proceeds Policy: Document that expresses agreement between the insured party, beneficiary, and insurer Risk: Potential loss Insurable Interest: Economic interest in life/property Life interest must exist at time policy obtained Property interest must exist at time of loss In terms of the nature of the insurance relationship, an insured party is a party who makes premium payments on an insurance policy in exchange for payment in the event of damage or injury to property or person. An insurer, or underwriter, is a party who receives premiums from the insured party. The beneficiary is the person who receives the insurance proceeds. A policy is a document that expresses an agreement between the insured party, the beneficiary, and the insurer. Risk constitutes potential loss. Finally, an insurable interest is an economic interest in life or property; in order to constitute an insurable interest, a life interest must exist at the time the policy is obtained, and a property interest must exist at the time of the loss. 51- The Insurance Contract Application For Insurance: Party with insured interest makes an offer to purchase insurance (Based on information described in application, insurance company evaluates the risk and determines whether to accept/reject offer) Effective Date: Date policy becomes effective Binder: Gives temporary insurance until decision to accept/reject application made In an application for insurance, a party with an . | Chapter 51 Insurance Law Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 51: Insurance Law 51- The Nature of the Insurance Relationship Insured Party: Party who makes a payment (a premium) in exchange for a payment in the event of damage/injury to property/person Premium: Payment on policy Insurer (Underwriter): Party who receives premiums from insured party Beneficiary: Person who receives insurance proceeds Policy: Document that expresses agreement between the insured party, beneficiary, and insurer Risk: Potential loss Insurable Interest: Economic interest in life/property Life interest must exist at time policy obtained Property interest must exist at time of loss In terms of the nature of the insurance relationship, an insured party is a party who makes premium payments on an insurance policy in exchange for payment in the event of damage or injury to .