Week 7-21 Insurance Law

INS 21 explained that insurance is a risk management tool how it protects individuals, families and organizations from loss. This protects the individuals, families and organizations by transferring the cost of loss to an insurer. The class explained the types of loss exposures for property, liability, and personal and personal loss. The purpose of insurance is to make the insured whole again. The class explained insurance as a business and the types of insures. There are private insurers: stock insurer, mutual insurers, and reciprocal insurance exchanges. There are also federal and state government insurance programs. There is also life insurance, which includes whole life protects the whole life, term life that covers a specific period, and universal life which covers insurance protection and includes a savings …show more content…
Insurance contract special characteristics they are conditional contract, a contract involving fortuitous evens and the exchange of unequal amounts, a contract of utmost good faith, a contract of adhesion, a contract of indemnity, and is nontransferable contract. The content of insurance policies include declarations, definitions, insuring agreements, exclusions, conditions, and miscellaneous provisions. There are two types of policies standard forms and manuscript policies. Standard forms are an effective way to provide insurance contracts to thousands of insured’s. They save time and expense in issuing polices and promote consistency. Manuscript policies is specifically drafted according to negotiated terms specified by the insured and insurer. Manuscript policies usually involve large amounts of insurance. Insurance policies are either self-contained where the policy is a single document or modular policies combine coverage forms and other documents to tailor a policy for and insured’s