Anonymous
more than 3 weeks ago
Explain the meaning of the following terms as used in insurance Comprehensive policy Term assurance policy Indemnity Average clause Double insurance? ?
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ChatGPT
more than 3 weeks ago
Comprehensive policy: A comprehensive policy is an insurance policy that provides coverage for a wide range of risks and perils. It typically includes coverage for damage to the insured's property, liability coverage for injuries or damages caused to others, and coverage for theft, vandalism, and other risks. Comprehensive policies are often used for auto insurance and homeowners insurance.
Term assurance policy: A term assurance policy is a type of life insurance policy that provides coverage for a specified period of time, known as the term. If the insured individual dies during the term of the policy, a death benefit is paid out to the beneficiaries. Term assurance policies do not have a cash value component and are typically more affordable than whole life insurance policies.
Indemnity: Indemnity is a principle in insurance that states that the insured should be restored to the same financial position they were in before a loss occurred. In other words, the purpose of insurance is to compensate the insured for their actual financial loss, not to provide them with a financial gain.
Average clause: The average clause is a provision in an insurance policy that allows the insurer to reduce the amount of a claim if the insured's property is underinsured. The insurer will only pay a proportionate amount of the claim based on the ratio of the insured value to the actual value of the property. This clause encourages insured individuals to accurately assess the value of their property and insure it accordingly.
Double insurance: Double insurance occurs when an individual or entity insures the same risk with two or more insurance companies. In the event of a claim, the insured may receive a payout from both insurers, but the total amount cannot exceed the actual value of the loss. Double insurance is typically not allowed in most insurance policies as it can lead to overcompensation and potential fraud.
Term assurance policy: A term assurance policy is a type of life insurance policy that provides coverage for a specified period of time, known as the term. If the insured individual dies during the term of the policy, a death benefit is paid out to the beneficiaries. Term assurance policies do not have a cash value component and are typically more affordable than whole life insurance policies.
Indemnity: Indemnity is a principle in insurance that states that the insured should be restored to the same financial position they were in before a loss occurred. In other words, the purpose of insurance is to compensate the insured for their actual financial loss, not to provide them with a financial gain.
Average clause: The average clause is a provision in an insurance policy that allows the insurer to reduce the amount of a claim if the insured's property is underinsured. The insurer will only pay a proportionate amount of the claim based on the ratio of the insured value to the actual value of the property. This clause encourages insured individuals to accurately assess the value of their property and insure it accordingly.
Double insurance: Double insurance occurs when an individual or entity insures the same risk with two or more insurance companies. In the event of a claim, the insured may receive a payout from both insurers, but the total amount cannot exceed the actual value of the loss. Double insurance is typically not allowed in most insurance policies as it can lead to overcompensation and potential fraud.
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Google Gemini AI
more than 3 weeks ago
Comprehensive Policy:
An insurance policy that provides coverage for a wide range of risks, including damage to the insured's property and liability for injuries or damages caused to others.
Term Assurance Policy:
A life insurance policy that provides coverage for a specific period of time, typically between 10 and 30 years. The policy expires and there is no payout if the insured dies after this term.
Indemnity:
The principle in insurance where the insured is restored to their financial position before the loss occurred. The insurer pays an amount that covers the loss but does not provide a windfall profit.
Average Clause:
A provision in a marine insurance policy that limits the insurer's liability to a proportion of the total value of the property insured. The proportion is determined by the ratio of the insured value to the total value of the property.
Double Insurance:
A situation where the same risk is insured under multiple insurance policies. In such cases, the insured can only recover the actual value of the loss from the insurers. Any excess coverage is void.
An insurance policy that provides coverage for a wide range of risks, including damage to the insured's property and liability for injuries or damages caused to others.
Term Assurance Policy:
A life insurance policy that provides coverage for a specific period of time, typically between 10 and 30 years. The policy expires and there is no payout if the insured dies after this term.
Indemnity:
The principle in insurance where the insured is restored to their financial position before the loss occurred. The insurer pays an amount that covers the loss but does not provide a windfall profit.
Average Clause:
A provision in a marine insurance policy that limits the insurer's liability to a proportion of the total value of the property insured. The proportion is determined by the ratio of the insured value to the total value of the property.
Double Insurance:
A situation where the same risk is insured under multiple insurance policies. In such cases, the insured can only recover the actual value of the loss from the insurers. Any excess coverage is void.
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