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Name the three types of insurance and what they relate to?
- -Socail insurance
- -Life/health insurance
- -Property/casualty insurance
In Ontario, is the government involved in property and casualty insurance?
Which insurances are adventure companies most involved with?
Property/ casualty insurance
What does the word “premium” mean?
essentially the sales for an insurance company- premium is the price of insurance
Name the 5 main players in the P&C (property and casualty) industry. Define any terms you do not know.
- The insured,
- the interniary
In the marketplace, when supply exceeds demand, what happens to prices?
Price are driven down-lower
How do insurance companies price premiums?
by claim costs
What is an underwriting profit?
process of evaluating risk and establishing appiopriate premium
What is the general definition of insurance (not the Act)?
Sharing the losses of a few among many members of a group
What is insurance not?
not an investment
An insurance policy is evidence of a contract. What three additional requirements does the government state that a contract must have?
- insurable interest
- most be risk + indenity
Give an example of breaking the utmost good faith.
if applying for life insurance, not telling about previous medical conditions
Name the 5 parts of an insurance policy (other than liability).
- stataty conditions
- policy conditions
- signatue close
In a liability policy, what is an endorsement used for?
to make change to an insurance policy
Describe the underwriting process.
Assessing risk based on factors making premium and terms
What is the difference between a peril and a hazard?
peril is an event that may cause a loss to occur hazardly
What is the golden rule when deciding how much insurance to purchase?
buy insurance based more on what you cant afford to lose than on what you can afford.
Most adventure operators will be interested in liability insurance. What does it do?
protects agaist law suits, liability arising from the conduct of theis business
What does CGL mean?
Command general liability
What 4 coverages does CGL provide for?
- bodily injury
- property damage
- tendent legal liability
If you were an operator, which coverage would you prefer, an occurrence policy or a claims-made policy?
Insurance has limits, or maximums for payout. What is the difference between aggregate and occurrence limits?
- aggreagte max payable for occurance
- occurance max payable for occurance combination
Most policies have a deductible. What is a deductible and how might a waiver form be attached to a deductible?
amout of the lose which the insured must pay
What items does Property Insurance not cover?
- water craft
- snow craft
If you were an operator, would you want an All-risk or a Named Peril policy?
Which insurance do you think will cost more, Actual cash value or Replacement cost? WHY????
replacement -because the item in question may be old and worth less but to replace it may ne very expensive.