19.2 Property and Casualty Insurance

Property Insurance—general type of insurance intended to indemnify for fire, theft, windstorm Casualty Insurance—indemnifies for losses resulting from accidents, chance, or negligence – Examples: workers compensation, disability insurance, and health insurance

Exclusions—exceptions, expressly stated in the policy

Fire Insurance—direct loss to property from fire, lightning strike, or removal from premises endangered by fire – Endorsements—riders that modify the policy

Coinsurance—clause in a fire insurance policy that requires the insured to maintain coverage equal to a certain percentage of the total current value of the insured property

Inland Marine Insurance – Created by fire insurance companies – Indemnify for loss to most personal property while it is being transported across land or inland waterways Personal property floater—covers any and all of an insured’s personal property against practically any peril regardless of the location Floater—protection floats with or follows the property Bailee Insurance—covers possible losses to customer’s property in their possession (ex. Dry cleaners)

Liability Insurance—type of casualty insurance that indemnifies against personal injury or property damage claims for which the insured is legally responsible – Major part of automobile insurance policies – Automobile Insurance—may include: liability coverage, medical payments, collision, and comprehensive, uninsured, and underinsured coverage

Liability coverage Omnibus clause—extends similar coverage to all members of the named insured’s household and to any person not in the household who is given permission to drive the insured’s car

Medical Coverage Occupant—one who is in, upon, entering, or leaving a vehicle

Automobile Insurance 2 types – Collision insurance—protects against direct and accidental damage to the vehicle caused by colliding with another object, such as a tree or bridge and overturning – Comprehensive insurance—indemnifies for damage to your OWN vehicle

Uninsured motorists coverage—allows the insured to collect damages from his or her own insurance company when they are not collectible because the person who caused the harm is uninsured Underinsured Motorists coverage— compensates the insured when the negligent driver may be insured but does not have sufficient insurance to cover damages

No fault insurance—requires parties to an automobile accident be indemnified by their own insurance company regardless of who is at fault – Helped lessen number of court cases