busuiness - insurance

• principles of insurance -

  Insurable interest, Utmost good faith, Indemity, Subrogation and Contribution
• what is insurable insurance

  to insure something you must benefit from it existence and financially suffer from it loss
• what is utmost good faith -

  you must answer all questions truthfully and reveal all relevant information when completing a proposal form and claim form, you must make all material facts relatiing to the policy known to the insurance company
• what is a material fact

  any facts that could that could change the desicion to grant you insurance or to affect your level of premiumn charged
• what is indemnity -

  the insured person should not make a profit from insurance , insureance only exists to put the injured person back in to the same financial position they were in beforesuffering the loss, not a better one
• what is subrogation -

  once an insurance company has paid compensation for the insured item, the right of that item is passed on to the insurance company
• what i san insurance write off-

  the cost of reparing the item is greater than the items replacment value
• what is contribution - 


  where the same risk is insured with more then 1 insurer they will divide the costs between them
• give exmples of what could be on a insurance form -

  1. age of car 2. value of car 3. milage on the car