Business Law with UCC Applications,13e

Insurance

Chapter 19

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

19-2

Learning Objectives

1. Define risk management and explain the purpose of insurance.

2. Identify the contractual elements of an insurance agreement.

3. Make clear the importance of insurable interest.

4. Differentiate among the different types of life insurance.

5. Explain how insurable interest differs with life insurance and property insurance.

19-3

Learning Objectives (cont.)

6. Explain the coinsurance clause in most property insurance policies.

7. Describe coverage given by fire, marine, homeowner’s, renter’s, and flood insurance.

8. Differentiate among the principal kinds of automobile insurance.

9. Describe the benefits included in health insurance policies.

10. List the steps in applying for, obtaining, and maintaining an insurance policy.

19-4

Insurance

• Risk Management– Parties to an Insurance Contract – Contractual Elements – Insurable Interest – Subrogation

19-5

Insurance

• Types of Insurance– Life Insurance – Property Insurance– Automobile Insurance – Health Insurance

19-6

Insurance

• Life insurance– Straight Life Insurance– Limited-Payment Life Insurance– Term Insurance– Annuity– Exemptions from Risk– Optional Provisions

19-7

Insurance

• Property Insurance– Coinsurance Clauses– Fire Insurance– Marine Insurance– Homeowner’s and Renter’s Insurance– Flood Insurance

19-8

Insurance

• Automobile Insurance– Bodily Injury Liability Insurance– Fault-Based Insurance– No-Fault Insurance– Add-On Coverage– Threshold Guidelines and Choice-Based

Jurisdictions– Uninsured-Motorist Insurance

19-9

Insurance

• Automobile Insurance– Underinsured-Motorist Insurance– Medical Payments Insurance– Property Damage Liability Insurance– Collision Insurance– Comprehensive Coverage– Substitute Transportation Insurance– Towing and Labor Insurance

19-10

Insurance

• Health Insurance– HMOs and PPOs– Medicare and Medicaid– Disability Insurance– Long-Term Care Insurance– Legal Protection

19-11

Insurance

• The Insurance Policy– Application – Binders – Premiums – Lapse

19-12

Insurance

• Cancellation of Insurance by Insurer– Warranties – Concealment – Misrepresentation – Estoppel