1st Parts of an Insurance Contract
5th part of Parts of an Insurance Contract
3rd step in The Risk Management Process
2nd part of Parts of an Insurance Contract
4th step in The claims process
Low High
4th part of Parts of an Insurance Contract
3rd step in The claims process
1 step in The Risk Management Process
Low Low
2nd step in The Risk Management Process
High High
2nd step in The claims process
1st step in The claims process
High Low
6th part of Parts of an Insurance Contract
4th step in The Risk Management Process
3rd part of Parts of an Insurance Contract
Declarations: statements about the life, activity, or property that is insured. Usually the first page of the contract (the “dec page”).
verify that a loss occurred
Exclusions: list of property, losses, and/or perils not covered by the policy.
Identify the loss exposures
Miscellaneous Provisions: catch-all category … how subrogation is handled, termination rights, how valuation disputes are resolved, etc.
Risk Control
determine if the loss is covered
Definitions: a glossary of key terms and how the terms are defined. Why is this section needed?
Measure and analyze the loss exposures
Retention
Insuring Agreement: summary of the major promises of the insurer. It can be “all-risks” (aka “open perils”) or “named-perils”
Select the appropriate risk treatment method(s)
Implement, monitor, and adjust the risk treatment plan as necessary
Conditions: provisions that limit or qualify the insurer’s promise to perform. (e.g. “we will not be liable if…” or “coverage is suspended if…”)
Transfer
Avoidance
pay the claim (if covered) and assist the insured
determine the value of the loss
