Outline for characteristics of general insurance?

I. Definition of general insurance
- General insurance refers to insurance policies that provide coverage for a wide range of risks and perils, such as property damage, liability, and personal injury.

II. Characteristics of general insurance
A. Broad coverage
- General insurance policies typically cover a wide range of risks, including property damage, liability, and personal injury.
- Examples of general insurance policies include homeowners insurance, auto insurance, and commercial property insurance.

B. Premiums and deductibles
- Policyholders pay premiums to the insurance company in exchange for coverage.
- Deductibles are the amount of money that the policyholder must pay out of pocket before the insurance company will cover the remaining costs.

C. Policy limits
- General insurance policies have limits on the amount of coverage provided for specific risks.
- Policyholders can choose to purchase additional coverage or higher limits for an additional premium.

D. Claims process
- When a covered event occurs, policyholders must file a claim with the insurance company to receive compensation.
- The insurance company will investigate the claim and determine the amount of compensation to be paid out.

E. Renewability
- General insurance policies are typically renewable on an annual basis, allowing policyholders to continue coverage as long as they pay their premiums.

F. Exclusions and limitations
- General insurance policies may have exclusions and limitations that specify what risks are not covered under the policy.
- Policyholders should carefully review their policy documents to understand what is and is not covered.

G. Regulation
- General insurance is regulated by state insurance departments to ensure that insurance companies comply with laws and regulations.
- Insurance companies must meet financial solvency requirements and adhere to fair claims practices.

H. Importance of general insurance
- General insurance provides financial protection and peace of mind for individuals and businesses facing unexpected risks and losses.
- Having adequate insurance coverage can help mitigate financial losses and protect assets.

Characteristics of General Insurance

I. Scope of Coverage
A. Limited to specific risks
B. Variety of policies tailored to protect specific assets or liabilities
C. Covers accidental and unforeseen events

II. Nature of Risks
A. Short-term coverage (typically one year or less)
B. Focuses on property and casualty risks
C. Covers loss or damage to tangible assets

III. Basis of Contract
A. Indemnity principle: Insurer compensates insured for actual loss suffered
B. Insurable interest: Insured must have a legal or financial stake in the property or liability
C. Utmost good faith: Both parties must disclose all material facts accurately

IV. Pricing
A. Premium determined based on actuarial analysis of risk and exposure
B. Premiums may vary depending on factors such as risk, location, and coverage limits
C. Deductibles and co-payments may apply

V. Types of General Insurance
A. Property insurance: Covers loss or damage to buildings, contents, and vehicles
B. Liability insurance: Protects against legal responsibility for harm caused to others
C. Marine insurance: Covers risks associated with shipping and maritime activities
D. Accident and health insurance: Provides coverage for medical expenses and income loss due to accidents or illnesses

VI. Role of Underwriting
A. Involves assessing risks and determining acceptable terms for coverage
B. Underwriters consider factors such as loss history, financial stability, and protective measures
C. Ratemaking and policy issuance are based on underwriting decisions

VII. Claim Handling
A. Insured notifies insurer of a covered loss
B. Insurer investigates the claim and determines the extent of coverage
C. Settlement is typically made in accordance with the policy terms