Insurance is a contract between. The insurer and insured whereby the insurer undertakes to pay the insured a fixed amount. In exchange for a fixed sum (premium) on the happening of a certain event (like a certain age or on death) or compensate for the actual loss when it places due to the risk insured.

INTRODUCTION OF INSURANCE

 INSURER: The insurance company
INSURED: The customer
PREMIUM: Periodic payments that keep a policy in force
POLICY: The legal contract between the insured and the insurer
RISK: The chance that a loss might occur
HAZARD: The insurance of a risk
PERIL: The cause of a loss (the reason loss occurred)
LOSS: A reduction in an asset (The reason a claim is filed)

GENERAL PRINCIPLES

  • Utmost faith in good
  • Insurable interest 
  • Indemnity
  • Contribution
  • Subrogation
  • Mitigation
  • Cause-Proxima


UTMOST FAITH IN GOOD 

 The principle of utmost good faith requires anyone seeking insurance to disclose all relevant facts these are facts that would influence the judgment of a prudent. Underwrite in fixing the premium or degerming whether they will take on the risk

 INDEMNITY

 Indemnity is considered to be the exact compensation required to restore the policyholder to the financial they enjoyed immediately before a loss

CONTRIBUTION

An insured party may have policies with two or more insurers covering the same risk ill-thought-out necessarily with equal degrees of liability, therefore, in the event of a claim, all of the insurers should pay an equitable proportion of the claim payment

SUBROGATION

If a policyholder has a claim paid by their insurance, they may also have a right to pursue funds from another source such a third-party who caused the incident

  1. Life insurance  
  2. a whole life policy 
  3. Endowment policy 
  4. Joint life policy 
  5. Annuity policy 
  6. Term assurance 
  7. Children’s deferred insurance policy 
  8. Policy with profits 
  9. Policy without profits 
  10. Group insurance policy
  11. House insurance policy 
  12. Health insurance policy 
  13. Life insurance

Life insurance 

 Alife insurance planning was introduced as a protection against uncertainty of life the agreement or contract with contain all the term condition is put in writing such document is called the policy the person whose life is issued is called the assured the insurance company is the insurer the consideration paid by in assured is the prelim