Understanding Insurance Policies: Principles and Parts
Classified in Philosophy and ethics
Written on in English with a size of 1.89 KB
What is an Insurance Policy
It's a contract of agreement between the insurer and the policy holder. It contains the terms and conditions.
The insurer agrees to cover the losses, if they occur, in return for premium payments.
Principles
- Principle of Insurable Interest: You can't insure anything that is not in your name. You can only insure something that, if something bad happens to it, you incur losses.
- Principle of Indemnity: The insurer will only return you the current value of the loss, they will pay you the current value of the object right before the incident, not the original price.
- Principle of Subrogation: Your insurance company pays the money and then they ask for the money from the company that has to pay.
- Principle of Contribution: When