Introduction to ArtificiaI Intelligence in Higher Education
Basic parts of insurance policy 2
1. Group Name- THE PERFECT MIX
Members:
Sanju Dubey
Shafqat Ali
Sajid Naqvi
Roshny
2. It is a contract between the insurer and the insured, known as
the policy holder, which determines the claims which the insurer
is legally required to pay, in exchange for the premium.
Parts of an insurance policy
Figuring out what insurance to buy and from whom can be a significant
undertaking on its own and trying to understand all the different parts
of the insurances policy is a whole other headache that may leave you
wondering who writes these kinds of obtuse documents but it is
important to know you are paying for, what your obligations are and
what is isn’t covered
3. An exclusion is a policy provision that eliminates coverage for
some type of risk. Exclusion narrows the scope of coverage
provided by the insurance policies, the insuring agreement is
very broad . Insurers utilize exclusion to carve away coverage for
risk they are unwilling to insure.
The exclusion section of an insurance policy is very important. It
describes property losses, causes of losses or perils that are not
covered. If you only read the policy declaration page and the
insuring agreement you may think you are paying for coverage
that you don’t actually have.
4. Many homeowners policies exclude coverage for damage due
to floods and earthquakes and life insurance policies will
exclude death due to suicide or an act of war.
There are major death cases which are also not covered:
1.Murder of the policyholder.
2.Death happen under the influence of alcohol.
3.Not disclosing the habit of smoking.
4.Death by participating in hazardous activities.
5.Death due to pre existing health condition like HIV or AIDS,
drug overdose etc.
5. •An Insurance declaration page is a summary of what is
contained in an insurance policy.
•Basic overview of insurance policy.
•Also know as ‘Dec page’.
6. • An insurance declaration page will provide the most
important information from your policy. It include:
• The insurance policy number and effective date.
• Name and address of the policy holder.
• Who and what is covered.
• The insurance company name, address and
contact information.
• Coverage information.
• Cost of insurance (premium amount).
8. •Clerical error such as misspelled name or incorrect
address.
•Incorrect listed type of coverage.
•Incorrect coverage amount.
•Missing endorsement.
•Missing discounts or incorrect pricing.
9. •It is a portion of the insurance policy in which the insurer promises to make
payment to or on behalf of the insured. The insurance agreement is usually
contained in a coverage from which a policy is constructed often insuring
agreement outline a broad scope of coverage , which is then narrowed by
exclusions and definitions.
•Tells you in more detail what the insurance company promises to do or cover
under the insurance policy.
•Section of an insurance contract which company specifies which risks it will
provide insurance coverage in exchange for premium payment at intervals .
•For example the insurance company may agree to pay for losses associated
with a natural disaster, to defend you in a liability action or pay specified
services, such as medical care.
10. 1. Named Perils coverage- Only the perils specifically
listed in the insurance policy are covered.
2. All Risk Coverage- All risks and losses are covered
except for those specifically excluded in insurance
policy.
11. The conditions section of an insurance policy outlines various
obligation that must be fulfilled for the contract to be enforced .
Some condition apply to insured while other apply to the insurer.
•How to report a loss?
•How long you have to report a loss?
•How property will be valued?
•How and when a policy can be canceled?
•When the insurer can non renew the policy?
12. Policy condition are typically listed in one or more section of a policy.
An example is the insurance services office’s (ISO’s) commercial
property policy which contains three groups of conditions. The ISO
standard policy templates that many insures use.
The loss conditions explain how losses are valued and paid additional
conditions section addresses issues such as coinsurance and rights of
mortgage holders. The commercial property conditions are contained
in a separate form and address matters not explained else , where such
as the coverage territory.
14. Insurance is a large investment and you will most likely
purchase multiple policies throughout your lifetime. It
is essential that you know what each type of insurance
covers and how it works so you can make the best
decision about what to buy. Do not base your decision
on just what is cheapest, but look at what it provides.
