Ch. 18 Insurance Law Pages 318 – 339 Insurance Fundamentals Property and Casualty Insurance Life and Social Insurance

Ch Property and Casualty Insurance Property Insurance – the general type of insurance intended to indemnify for harm to the insured’s personal or real property brought about by perils such as fire, theft, and windstorm. Casualty Insurance – type of insurance that indemnifies for losses resulting from accident, chance, or negligence Exclusions – certain exceptions to coverage relieve the insurance company from paying

Types of Property and Casualty Insurance Fire Insurance – covers the direct loss to property resulting from fire, lightning strike, or removal from premises endangered by fire Standard – include dwelling and contents Endorsements – riders – modified forms or standard policy Coinsurance – a 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.

Property and Casualty Insurance Inland Marine Insurance Developed by fire insurance companies to indemnify for loss to most personal property while it is being transported across land or inland waterways. Personal Property floater – issued to cover any and all of an insured’s personal property against practically any peril regardless of the location of the property Floater - that the protection floats with, or follows the property

Liability Insurance Casualty insurance - indemnifies against personal injury or property damage claims for which the insured is legally responsible This is the major part of automobile insurance

Ch. 18 – 2 Automobile Insurance Liability insurance Medical payments coverage Collision and comprehensive coverage Collision – protest against direct and accidental damage due to the vehicle caused by colliding with another object or overturning Comprehensive – indemnifies against all damage to the insured’s car except that caused by collision or upset Uninsured and underinsured coverage No-fault insurance – the parties to an automobile accident be indemnified by their own insurance company regardless of who is at fault