1. Business Law and the Regulation of Business Chapter 49: Introduction to Property and Property Insurance By Richard A. Mann & Barry S. Roberts

2. Topics Covered in this Chapter I.Introduction to Property and Personal Property A. Kinds of Property B. Transfer of Title to Personal Property II.Property Insurance A. Fire and Property Insurance B. Nature of Insurance Contracts

3. Kinds of Property n Tangible Property - physical objects. n Intangible Property - property that does not exist in a physical form. n Real Property - land & interest in land. n Personal Property - all property that is not real property. n Fixture - personal property so firmly attached to real property that an interest in it arises under real property law.

4. Kinds of Property Personal Real TangibleGoodsLand Buildings Fixtures IntangibleCommercial Paper Stock Certificates Contract Rights Copyrights Patents Leases Easements Mortgages

5. Transfer of Title to Personal Property n Sale - transfer of property for a price. n Gift - transfer of property without consideration (price). n Will - right to property acquired upon death of the owner. n Accession - right of a property owner to any increase in such property.

6. Confusion n Intermixing of goods belonging to two or more owners such that they can identify their individual property only as part of a mass of like goods. –If due to mistake, accident, or agreement, loss shared proportionately. –If caused by an intentional or unauthorized act, wrongdoer bears loss.

7. Taking Title by Possession n Abandoned Property - intentionally disposed of by owner; finder is entitled to the property. n Lost Property - unintentionally left by owner; the finder is generally entitled to the property. n Mislaid Property - intentionally placed by the owner but unintentionally left; the owner of the premises is generally entitled to the property. n Treasure Trove - coins or currency hidden or concealed by the owner for such a length of time that the owner is probably dead or undiscoverable.

8. Fire and Property Insurance n General Definition of Insurance - contractual arrangement that distributes risk of loss among a large number of members through an insurance company. n Coverage - fire & property insurance protects against loss due to fire or related perils. n Co-insurance - insurance in which a person insures property for less than its full or stated value and agrees to share the risk of loss. n Other Insurance Clauses - if multiple insurers are involved, liability is distributed pro rata.

9. Types of Fire n Friendly Fire - fire contained in its intended location. n Hostile Fire - any fire outside its intended or usual location.

10. Types of Policies n Valued Policy - covers full value of property as agreed upon by the parties at the time the policy is issued. n Open Policy - covers fair market value of property as calculated immediately prior to the loss.

11. Nature of Insurance Contracts n General Contract Law - basic principles of contract law apply. n Insurable Interest - a financial interest or a factual expectancy interest in someone's property that justifies insuring the property; the interest must exist at the time the property loss occurs. n Premium - amount to be paid for an insurance policy.

12. Defenses of the Insurer n Misrepresentation - false statement of a material fact made by the insured that is justifiably relied upon by the insurer; enables the insurer to rescind the contract within a specified time. n Breach of Warranty - the failure of a required condition; generally an insurer may avoid liability for a breach of warranty only if the breach is material.

13. Defenses of the Insurer n Concealment - fraudulent failure of an applicant for insurance to disclose material facts that the insurer does not know; allows the insurer to rescind the contract. n Waiver - an insurer intentionally relinquishes the right to deny liability. n Estoppel - an insurer is prevented by its own conduct from asserting a defense. n Termination - an insurance contract may be terminated by due performance or cancellation.