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9 Cards in this Set
- Front
- Back
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What is indemnity? |
Financial compensation sufficient to place the insured in the same financial position after a loss as enjoyed immediately before the loss occurred |
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What policies do not indemnify the insured? |
Personal accident and sickness |
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What are policies that don't indemnify called? |
Benifit policies |
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What are the options to how indemnity can be provided? |
Cash payment to the insured Repair Replacement Reinstatement |
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How can indemnity be modified? |
Agreed value policies New for old First loss policies |
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What is an agreed value policy? |
The value of the loss is decided before hand. Partial losses are promotional to the value of the total loss |
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What is a new for old policy? |
May provide more than indemnity. The sum payable is based on the replacement cost of the object (as if it were new) at the time of the loss |
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What is a first loss policy? |
Issued for an amount less than the total value of the subject matter. |
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How is a first loss policy indemnity calculated? |
Calculating the probable maximum loss. This is the worst case scenario. |
