Explain the six parts of an insurance contract

      

Explain the six parts of an insurance contract

  

Answers


Simon
• Declarations- these are statements that provide information about property or activity to be insured. The declarations section is found on the first page and contains information on the identity of the insurer, name of insured, location of the property, period of protection, amount of insurance, amount of premium etc.
• Definitions. Definitions contains keywords or phrase which have quotation marks. Definitions defines clearly the keywords or phrases so that coverage under the policy can be determined more easily.
• Insuring agreements. This comprise the major promises of the insurer. These agreements are of two types; named-peril policy and all-risks coverage. Under Named-peril policy, only those perils specifically named in the policy are covered while under all-risk policy all perils are covered except those specifically excluded.
• Exclusions. A contract may exclude certain losses in property insurance or limit the coverage of a certain property. For example in home owners policy, cars may be excluded.
• Conditions. These are provisions in the policy that qualify or place limitations on the insurer’s duty to perform insurance contract terms. If the conditions are not met, the insurer can refuse to pay the claim.
• Miscellaneous provisions. These involves requirements if loss occurs, subrogation, cancellation etc.

skilled writter answered the question on May 1, 2018 at 16:15


Next:  State the exceptions to the principle of indemnity in insurance
Previous: State the meaning and explain objectives of risk management

View More Business Studies Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions