38.1

b a c k n e x th o m e

Chapter 38 Objectives

Explain the nature of life insurance and its normal limitation.

Define property insurance.

Identify the types of coverage afforded by automobile insurance.

© 2002 West Educational Publishing To accompany Law for Business, 14e, by Ashcroft and Ashcroft

38.2

b a c k n e x th o m e

Types of Life Insurance

Term lifeRenewable, level termDecreasing term

EndowmentDecreasing term plus a savings account

Whole lifeContinues until death or age 100.

Combinations of any of the above

38.3

b a c k n e x th o m e

Limitations onLife Insurance

What are two limitations upon risk covered by life insurance?

Suicide and war activity What is the usual grace period for

paying life insurance premiums? 30-31 days May a policyholder elect to change

beneficiaries? Yes

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38.4

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Property Insurance

Explain each of thefollowing policy types:

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BlanketFloatingHomeowner’s

OpenValuedSpecific

38.5

b a c k n e x th o m e

Property Insurance

Explain each of the following terms:

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Merchandise inventoryCoinsuranceDefense clause

FINE FASHIONS

38.6

b a c k n e x th o m e

Auto Insurance Provisions

Theft - conversion or robbery. Fire - not only covers the car itself,

but any conveyance upon which the car is being transported.

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b a c k n e x th o m e

Auto Insurance Provisions

Collision - covers damage when a car strikes an object or object strikes a car.

Comprehensive - covers windstorm, earthquake, flood, strikes, malicious mischief, submersion in water, riot, hail, falling aircraft.

38.8

b a c k n e x th o m e

Public Liability Insurance

Bodily injury insuranceBodily injury insurance

Property damage insuranceProperty damage insurance

Medical paymentsMedical payments

Uninsured motorists insuranceUninsured motorists insurance