The document provides information on property insurance and the various parties involved. It discusses the types of property insurance like home insurance, flood insurance, and landlord insurance. It then describes the roles of claims adjusters, public adjusters, and loss consultants in investigating and assessing insurance claims. Claims adjusters work on behalf of the insurance company, public adjusters work for the policyholder, and loss consultants provide reports to determine property values and restoration costs.
General insurance provides coverage for non-life risks and property such as homes, vehicles, health and more. It protects against risks like fire, theft, floods and other damages. Some key types of general insurance include car, liability, marine, fire, engineering and burglary insurance. Purchasing general insurance offers benefits like peace of mind, investment savings, financial security and independence. To make a claim, policyholders must submit documents like the claim form, license, bills and police reports, depending on the type of insurance and incident. Major insurance companies in India offer various general insurance options.
Classification of insurance property insurance (marine) wahidsajol
This document outlines the classification and types of insurance. It discusses two ways of classifying insurance: branch wise and subject matter wise. Branch wise includes marine, fire, life, accident, and others. Subject matter wise includes insurance of person, property, liability, and interest. It then focuses on marine insurance, outlining the key subjects of hull, cargo, and freight. It describes five types of marine policies: time policy, voyage policy, mixed policy, floating policy, and building risk policy.
This document provides an introduction to various types of insurance including auto, homeowner's/renter's, umbrella, health, and life insurance. It defines key insurance terms and outlines recommended coverage amounts. Auto insurance covers liability, collision, comprehensive coverage, medical payments, and uninsured motorist risks. Homeowner's insurance protects dwellings, other structures, personal property, and provides liability coverage. The document advises considering the pros and cons before filing an insurance claim and provides questions to consider.
Insurance involves transferring risk of loss from one entity to another in exchange for a premium payment. There are principles of insurance like utmost good faith and indemnity. General or non-life insurance provides payments for losses from events like accidents rather than life insurance. Common types of general insurance include fire, health, marine, and auto insurance which provide coverage for losses or damages from those sources.
The document provides an overview of insurance companies and the insurance industry in India. It discusses the history and evolution of insurance, including the nationalization of life and general insurance. It describes the functions of insurance companies in providing protection and risk management. It also outlines the different types of insurance like life insurance, general insurance, and reinsurance. Key entities discussed are LIC, GIC and their subsidiaries, objectives, and the various insurance plans and policies offered.
There are two broad types of insurance: life insurance and general insurance. Life insurance provides financial compensation in the event of death or disability, and can be term insurance, whole life insurance, or other plans. General insurance covers financial losses from things other than death, including health issues, vehicle accidents, home damage, and travel problems. The main types of general insurance are health insurance, motor insurance, home insurance, travel insurance, and fire insurance.
The document provides an overview of how insurance companies work. It discusses key terms like insurer, insured, and premium. It explains that insurance companies collect premiums from customers, invest those funds, and use the money to pay claims when insured events occur. The document also outlines some common types of insurance like life, health, property, and car insurance. It discusses factors that determine insurance rates and gives examples of career paths within an insurance company.
General insurance provides coverage for non-life risks and property such as homes, vehicles, health and more. It protects against risks like fire, theft, floods and other damages. Some key types of general insurance include car, liability, marine, fire, engineering and burglary insurance. Purchasing general insurance offers benefits like peace of mind, investment savings, financial security and independence. To make a claim, policyholders must submit documents like the claim form, license, bills and police reports, depending on the type of insurance and incident. Major insurance companies in India offer various general insurance options.
Classification of insurance property insurance (marine) wahidsajol
This document outlines the classification and types of insurance. It discusses two ways of classifying insurance: branch wise and subject matter wise. Branch wise includes marine, fire, life, accident, and others. Subject matter wise includes insurance of person, property, liability, and interest. It then focuses on marine insurance, outlining the key subjects of hull, cargo, and freight. It describes five types of marine policies: time policy, voyage policy, mixed policy, floating policy, and building risk policy.
This document provides an introduction to various types of insurance including auto, homeowner's/renter's, umbrella, health, and life insurance. It defines key insurance terms and outlines recommended coverage amounts. Auto insurance covers liability, collision, comprehensive coverage, medical payments, and uninsured motorist risks. Homeowner's insurance protects dwellings, other structures, personal property, and provides liability coverage. The document advises considering the pros and cons before filing an insurance claim and provides questions to consider.
Insurance involves transferring risk of loss from one entity to another in exchange for a premium payment. There are principles of insurance like utmost good faith and indemnity. General or non-life insurance provides payments for losses from events like accidents rather than life insurance. Common types of general insurance include fire, health, marine, and auto insurance which provide coverage for losses or damages from those sources.
The document provides an overview of insurance companies and the insurance industry in India. It discusses the history and evolution of insurance, including the nationalization of life and general insurance. It describes the functions of insurance companies in providing protection and risk management. It also outlines the different types of insurance like life insurance, general insurance, and reinsurance. Key entities discussed are LIC, GIC and their subsidiaries, objectives, and the various insurance plans and policies offered.
There are two broad types of insurance: life insurance and general insurance. Life insurance provides financial compensation in the event of death or disability, and can be term insurance, whole life insurance, or other plans. General insurance covers financial losses from things other than death, including health issues, vehicle accidents, home damage, and travel problems. The main types of general insurance are health insurance, motor insurance, home insurance, travel insurance, and fire insurance.
The document provides an overview of how insurance companies work. It discusses key terms like insurer, insured, and premium. It explains that insurance companies collect premiums from customers, invest those funds, and use the money to pay claims when insured events occur. The document also outlines some common types of insurance like life, health, property, and car insurance. It discusses factors that determine insurance rates and gives examples of career paths within an insurance company.
This document outlines different types of insurance policies including auto, life, health, home, disability, and more. Auto insurance includes property damage, personal injury, bodily injury, and collision/comprehensive coverage. Life insurance includes whole, universal, and term policies. Health insurance includes PPO, HMO, POS, and indemnity plans. Homeowner's policies range from limited to special coverage. Disability policies have options like non-cancelable or guaranteed renewable. The document encourages further research on their website for more insurance details.
This document provides an overview of different types of common insurance policies. It defines insurance as an arrangement between an individual and insurer to protect against risk of financial loss. The main types of insurance discussed are automobile, health, life, disability, and homeowners insurance. For each type, key details are provided such as typical coverage, purpose, and importance. The summary restates that insurance helps limit financial losses from accidents by defining premiums as fees paid to insurers and deductibles as out-of-pocket amounts before coverage begins.
This document provides an introduction and overview of insurance. It discusses that insurance helps spread risk over many individuals and helps people recover from losses. Insurance is important for businesses to manage risks to property, equipment, inventory and more.
The document then defines insurance as a social device that provides financial compensation for losses through accumulated contributions of participants. It explains key insurance terms like insurer, insured, policy, and premium. It distinguishes assurance which guarantees payment of a sum, from insurance which covers risks that may or may not occur.
Finally, the document outlines principles of insurance like utmost good faith between parties, the requirement of insurable interest, the principle of indemnity where payment covers actual loss, and other principles like
Insurance protects individuals and businesses from financial loss by paying compensation for damage to or loss of valuable property and assets. It works by pooling risks among many policyholders, so that the costs of claims made by a few are shared among all. There are important principles that govern insurance, such as insurable interest, utmost good faith, indemnity, contribution, subrogation and average clauses.
This document discusses the nature and importance of insurance. It covers the insurance production process including pricing, underwriting, claims settlement, distribution, and investment management. It provides an overview of the global insurance industry including leading companies, regional premium shares, and insurance density and penetration rates. It also discusses the role of insurance in economic growth by facilitating property rights and financial development which are important for economic growth.
Types of insurance By SHAMSIKADALUR MBAshamsikadalur
This document provides an overview of the many different types of insurance that exist. It discusses categories such as life insurance, health insurance, property insurance, auto insurance, and home insurance. Within these categories, it further outlines specific types of insurance like term life, whole life, dental, disability, fire, flood, earthquake, and more. It also explains what types of risks or losses each insurance is intended to cover.
PPT on insurance for students. I have explained main types of insurance in this PPT. Hope you will find it beneficial and Useful. If you like my presentation then do comment. I will make more PPT's for you like this. Thank You.
Insurance is a form of risk management where one entity receives a payment from another in exchange for compensating for losses from uncertain future events such as fire damage, injury, or death. There are different types of insurance including life, health, vehicle, property, and more. Insurance policies help provide certainty against risks, allow for risk sharing, and assist in capital formation. Common property insurance policies cover fire damage, marine cargo losses, and general liability claims.
The document discusses various types of insurance contracts in India including life, fire, and marine insurance. It outlines key elements such as insurable interest, indemnity, disclosure requirements, and types of policies for each. For life insurance, it describes who can have an insurable interest and different types of life policies. For fire insurance, it discusses the average clause, insurable interest, and types of fire policies. For marine insurance, it discusses insurable interest, maritime perils, and types of marine policies.
This document provides an overview of insurance contracts and their importance. It defines insurance as a cooperative device to spread risk among many exposed to the same risks. An insurance contract involves one party agreeing to pay a specified sum if an event occurs, in exchange for the other party paying a premium. The document outlines key elements of insurance contracts including insurable interest, utmost good faith, indemnity, subrogation and warranties. It also discusses the history of insurance and highlights the advantages of insurance for individuals, businesses and society, such as security, protection from risk, and encouragement of savings and investment.
Principles & practices of insurance com 334Haresh R
- The document discusses principles and practices of insurance. It begins with quotes related to risk and uncertainty.
- It then provides an introduction to insurance, defining it as the socialization of risks where insurance companies indemnify insured parties for losses. It discusses the different types of risks businesses face.
- The document goes on to define key insurance terms like risk, insurable interest, indemnity and different categories of risk. It also outlines the principles of insurance like utmost good faith, subrogation and contribution.
- Finally, it discusses the history and development of insurance in India and the establishment of the Insurance Regulatory and Development Authority.
Insurance provides financial protection against losses in exchange for regular payments. An insurance policy is a contract outlining what risks are covered, payment amounts, and costs to the policyholder. Premiums are paid periodically for coverage. Deductibles are amounts the policyholder must pay out-of-pocket before insurance covers remaining costs. Common types of insurance include auto, home, life, health, and disability coverage.
The document provides an overview of life insurance products in India. It begins by defining insurance and life insurance, and outlines the key principles of insurance including insurable interest, utmost good faith, and indemnity. It then describes various types of life insurance policies like whole life, term life, endowment plans, annuities, and group life insurance. The document concludes by summarizing popular life insurance products offered by LIC and private insurers in India.
This is the project that I made in T.Y BBI on property insurance. The project covers the following topics:
1. Introduction
2. Types
3. Property Valuation
4. Business Perspective On Property Insurance
5. Importance
6. Case Study
7. Conclusion
8. References
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
Insurance provides protection from financial loss by spreading risk across many individuals. It has several key functions:
1. Collective risk bearing - Insurance shares the costs of losses among policyholders by pooling their premium payments into a fund used to reimburse those who suffer specified risks.
2. Evaluating and pricing risk - Insurance assesses various risk factors to determine the likelihood of losses and set premium rates accordingly.
3. Providing certainty - Insurance transforms uncertainty about potential losses into a known payment of premiums in exchange for coverage if a loss occurs.
Powerpoint, adapted from a powerpoint available on the web by the Texas Department of Insurance. Review of the basic types of insurance and their reasons.
The six principles of insurance are: 1) Utmost good faith, which requires full disclosure between the applicant and insurer; 2) Insurable interest, which requires the insured to have a stake in the insured property or subject; 3) Indemnity, which provides compensation up to but not exceeding the actual loss amount; 4) Proximate cause, which determines liability based on the original or primary cause of loss; 5) Subrogation, which allows the insurer to recover losses from responsible third parties; and 6) Contribution, which requires multiple insurers to share liability when more than one policy covers a loss. These principles represent the legal guidelines for insurance contracts and claims handling.
The document provides an overview of an introductory insurance course. It outlines the learning objectives which are to gain an understanding of risk and insurance, appreciate insurance's role in the economy, and understand how insurance industry players work together. It then covers key insurance concepts like definition of insurance, risk management, insurance principles, categories of insurance such as property and liability, and roles of industry players.
The document summarizes property insurance, including that it provides protection against risks like fire, theft, and weather damage. It describes the main types of property insurance like home insurance and discusses what is covered (e.g. theft protection, home replacement) and perils covered (e.g. lightning, explosion). It also outlines exclusions like war damage and how to promote property insurance through community meetings, brochures, and seminars. In conclusion, it finds that many apartments are underinsured and lack security, with fire being a main peril.
Property & Liability insurance involves the equitable transfer of risk, where many policyholders share the financial losses of a few through premium contributions. P&L insurance company investments total around $789 billion, with most assets invested in securities to pay claims if needed. Net premiums written for all lines were around $300 billion. P&L policies are short-term, and claims payments can vary greatly depending on catastrophes. Various rating systems like schedule, experience and retrospective ratings adjust premiums based on risk factors of individual policies.
This document outlines different types of insurance policies including auto, life, health, home, disability, and more. Auto insurance includes property damage, personal injury, bodily injury, and collision/comprehensive coverage. Life insurance includes whole, universal, and term policies. Health insurance includes PPO, HMO, POS, and indemnity plans. Homeowner's policies range from limited to special coverage. Disability policies have options like non-cancelable or guaranteed renewable. The document encourages further research on their website for more insurance details.
This document provides an overview of different types of common insurance policies. It defines insurance as an arrangement between an individual and insurer to protect against risk of financial loss. The main types of insurance discussed are automobile, health, life, disability, and homeowners insurance. For each type, key details are provided such as typical coverage, purpose, and importance. The summary restates that insurance helps limit financial losses from accidents by defining premiums as fees paid to insurers and deductibles as out-of-pocket amounts before coverage begins.
This document provides an introduction and overview of insurance. It discusses that insurance helps spread risk over many individuals and helps people recover from losses. Insurance is important for businesses to manage risks to property, equipment, inventory and more.
The document then defines insurance as a social device that provides financial compensation for losses through accumulated contributions of participants. It explains key insurance terms like insurer, insured, policy, and premium. It distinguishes assurance which guarantees payment of a sum, from insurance which covers risks that may or may not occur.
Finally, the document outlines principles of insurance like utmost good faith between parties, the requirement of insurable interest, the principle of indemnity where payment covers actual loss, and other principles like
Insurance protects individuals and businesses from financial loss by paying compensation for damage to or loss of valuable property and assets. It works by pooling risks among many policyholders, so that the costs of claims made by a few are shared among all. There are important principles that govern insurance, such as insurable interest, utmost good faith, indemnity, contribution, subrogation and average clauses.
This document discusses the nature and importance of insurance. It covers the insurance production process including pricing, underwriting, claims settlement, distribution, and investment management. It provides an overview of the global insurance industry including leading companies, regional premium shares, and insurance density and penetration rates. It also discusses the role of insurance in economic growth by facilitating property rights and financial development which are important for economic growth.
Types of insurance By SHAMSIKADALUR MBAshamsikadalur
This document provides an overview of the many different types of insurance that exist. It discusses categories such as life insurance, health insurance, property insurance, auto insurance, and home insurance. Within these categories, it further outlines specific types of insurance like term life, whole life, dental, disability, fire, flood, earthquake, and more. It also explains what types of risks or losses each insurance is intended to cover.
PPT on insurance for students. I have explained main types of insurance in this PPT. Hope you will find it beneficial and Useful. If you like my presentation then do comment. I will make more PPT's for you like this. Thank You.
Insurance is a form of risk management where one entity receives a payment from another in exchange for compensating for losses from uncertain future events such as fire damage, injury, or death. There are different types of insurance including life, health, vehicle, property, and more. Insurance policies help provide certainty against risks, allow for risk sharing, and assist in capital formation. Common property insurance policies cover fire damage, marine cargo losses, and general liability claims.
The document discusses various types of insurance contracts in India including life, fire, and marine insurance. It outlines key elements such as insurable interest, indemnity, disclosure requirements, and types of policies for each. For life insurance, it describes who can have an insurable interest and different types of life policies. For fire insurance, it discusses the average clause, insurable interest, and types of fire policies. For marine insurance, it discusses insurable interest, maritime perils, and types of marine policies.
This document provides an overview of insurance contracts and their importance. It defines insurance as a cooperative device to spread risk among many exposed to the same risks. An insurance contract involves one party agreeing to pay a specified sum if an event occurs, in exchange for the other party paying a premium. The document outlines key elements of insurance contracts including insurable interest, utmost good faith, indemnity, subrogation and warranties. It also discusses the history of insurance and highlights the advantages of insurance for individuals, businesses and society, such as security, protection from risk, and encouragement of savings and investment.
Principles & practices of insurance com 334Haresh R
- The document discusses principles and practices of insurance. It begins with quotes related to risk and uncertainty.
- It then provides an introduction to insurance, defining it as the socialization of risks where insurance companies indemnify insured parties for losses. It discusses the different types of risks businesses face.
- The document goes on to define key insurance terms like risk, insurable interest, indemnity and different categories of risk. It also outlines the principles of insurance like utmost good faith, subrogation and contribution.
- Finally, it discusses the history and development of insurance in India and the establishment of the Insurance Regulatory and Development Authority.
Insurance provides financial protection against losses in exchange for regular payments. An insurance policy is a contract outlining what risks are covered, payment amounts, and costs to the policyholder. Premiums are paid periodically for coverage. Deductibles are amounts the policyholder must pay out-of-pocket before insurance covers remaining costs. Common types of insurance include auto, home, life, health, and disability coverage.
The document provides an overview of life insurance products in India. It begins by defining insurance and life insurance, and outlines the key principles of insurance including insurable interest, utmost good faith, and indemnity. It then describes various types of life insurance policies like whole life, term life, endowment plans, annuities, and group life insurance. The document concludes by summarizing popular life insurance products offered by LIC and private insurers in India.
This is the project that I made in T.Y BBI on property insurance. The project covers the following topics:
1. Introduction
2. Types
3. Property Valuation
4. Business Perspective On Property Insurance
5. Importance
6. Case Study
7. Conclusion
8. References
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
Insurance provides protection from financial loss by spreading risk across many individuals. It has several key functions:
1. Collective risk bearing - Insurance shares the costs of losses among policyholders by pooling their premium payments into a fund used to reimburse those who suffer specified risks.
2. Evaluating and pricing risk - Insurance assesses various risk factors to determine the likelihood of losses and set premium rates accordingly.
3. Providing certainty - Insurance transforms uncertainty about potential losses into a known payment of premiums in exchange for coverage if a loss occurs.
Powerpoint, adapted from a powerpoint available on the web by the Texas Department of Insurance. Review of the basic types of insurance and their reasons.
The six principles of insurance are: 1) Utmost good faith, which requires full disclosure between the applicant and insurer; 2) Insurable interest, which requires the insured to have a stake in the insured property or subject; 3) Indemnity, which provides compensation up to but not exceeding the actual loss amount; 4) Proximate cause, which determines liability based on the original or primary cause of loss; 5) Subrogation, which allows the insurer to recover losses from responsible third parties; and 6) Contribution, which requires multiple insurers to share liability when more than one policy covers a loss. These principles represent the legal guidelines for insurance contracts and claims handling.
The document provides an overview of an introductory insurance course. It outlines the learning objectives which are to gain an understanding of risk and insurance, appreciate insurance's role in the economy, and understand how insurance industry players work together. It then covers key insurance concepts like definition of insurance, risk management, insurance principles, categories of insurance such as property and liability, and roles of industry players.
The document summarizes property insurance, including that it provides protection against risks like fire, theft, and weather damage. It describes the main types of property insurance like home insurance and discusses what is covered (e.g. theft protection, home replacement) and perils covered (e.g. lightning, explosion). It also outlines exclusions like war damage and how to promote property insurance through community meetings, brochures, and seminars. In conclusion, it finds that many apartments are underinsured and lack security, with fire being a main peril.
Property & Liability insurance involves the equitable transfer of risk, where many policyholders share the financial losses of a few through premium contributions. P&L insurance company investments total around $789 billion, with most assets invested in securities to pay claims if needed. Net premiums written for all lines were around $300 billion. P&L policies are short-term, and claims payments can vary greatly depending on catastrophes. Various rating systems like schedule, experience and retrospective ratings adjust premiums based on risk factors of individual policies.
The document discusses various types of insurance, including life, general, health, and property insurance. It provides definitions and classifications of insurance, explains concepts like premiums and insurers, and gives examples of specific insurance policies and plans like health, home, and renter's insurance. Key details covered include classifications of insurance, definitions of terms, common policy elements and exclusions, health insurance initiatives and schemes in India, and importance of property and health insurance.
This document discusses the quantum optical master equation, which describes the dynamics of an open quantum system interacting with a thermal reservoir. It begins by introducing closed and open quantum systems. It then derives the master equation for a system interacting with a photon bath using the Born-Markov approximation. The master equation is obtained in Lindblad form with dissipator terms describing emission and absorption. As an example, the master equation is written for a two-level system, and its stationary solutions show the system approaches a thermal equilibrium state over time.
Ned Flanders and Cletus Spuckler both lived in Newcastle, Oklahoma and owned homes there. Ned purchased property insurance to protect against disasters like tornadoes, which are common in the area. A large tornado then destroyed both of their homes. While Ned's insurance paid to rebuild his house, Cletus lost his home and had to live in a shelter since he did not have insurance. The community helped Cletus rebuild. He then learned about property insurance from Ned and purchased a policy to protect his new home.
Crime coverage in newspapers is important to keep people informed. Common crimes reported include homicide (including manslaughter, murder, and assassination), assault, kidnapping, larceny, robbery, contempt of court, conspiracy, gambling, drug trafficking, smuggling, riots, and rape. Reporting on these crimes gives new reporters experience covering a variety of events and human interest stories.
Inst 1120-PC (Schedule M-3)-Instructions for Schedule M-3 (Form 1120-PC), Net Income (Loss) Reconciliation for U.S. Property and Casualty Insurance Companies With Total Assets of $10 Million or More
This document discusses strategies for purchasing property and casualty insurance. It recommends putting the most important coverages in place first, choosing the highest deductible that is affordable, and being thorough by ensuring all necessary coverage and potential discounts are considered. Documentation of policy details and conversations with advisors is also advised.
This document appears to outline steps in a process involving an employer, employee, provider, pharmacy, and PBM but does not contain enough contextual information to determine the overall purpose or goal. It mentions enrolling, prescribing medication, dispensing medication at a pharmacy, sending and receiving information between various entities, and issuing a card. Payment seems to be received at the end but the overall goal or purpose is unclear from the limited information provided.
Legal Concepts Of Liability Insurance 2010Annette Ardler
THis course addresses liability insurance and the legal concepts associated with it. During the course, students will gain an understanding of the following concepts: Four Types of Exposures: Test for Negligence; Defense and Conditions for Negligence; Duty to Defend; Claims Settlement and Payments by Policy Structure
The document discusses the importance of risk management for ISO27001 certification. It summarizes the previous webinar on why organizations should pursue ISO27001 certification. The webinar covers key terms like assets, threats, vulnerabilities, risks, and risk assessment. It emphasizes that risk assessment is critical to inform security controls and ensure spending is properly balanced against business risks. The webinar promotes an upcoming series of webinars and resources on carrying out ISO27001 risk assessments.
This document defines risk and uncertainty and discusses various types of risks. It begins by defining risk as outcomes that can be assigned probabilities based on historical data, while uncertainty refers to outcomes that are too uncertain to assign probabilities. It then discusses different types of risks like market risk, credit risk, liquidity risk, and operational risk. It also discusses approaches to evaluate risk like using a risk-adjusted discount rate, certainty equivalent, and decision trees.
This module discusses risk management and insurance. It covers topics such as risks and risk management, different types of risks, methods of handling risks including avoiding, controlling, accepting and transferring risks. It also discusses the basic concepts of insurance including risk pooling, law of large numbers, requirements of insurable risks, advantages and disadvantages of insurance. Additionally, it covers personal risk management process, objectives of risk management pre-loss and post-loss, insurance market dynamics and underwriting cycle. Finally, it discusses some key legal principles of insurance contracts such as offer and acceptance, consideration, insurable interest, subrogation and utmost good faith.
The importance of risk management in businessr2financial
R2 Financial Technologies provides multi-asset risk analytics and risk intelligence to all sorts of business decision makers. Visit their website today to learn more http://www.r2-financial.com/.
The Insurance Act of 1938 was the first legislation governing all forms of insurance in India and provided strict state control over the insurance business. It aimed to safeguard policyholder interests and establish norms for smoothly conducting the insurance business and minimizing disputes. Subsequent acts like the Insurance Regulatory and Development Authority Act of 1999 established regulatory authorities to further protect policyholders, regulate the industry, and ensure its orderly growth.
The passage provides details about the history and development of the life insurance sector in India, including the following key points:
- The life insurance sector was initially dominated by private players until it was nationalized in 1956 with the formation of LIC.
- The sector was reopened to private players in 2000 with the establishment of IRDA to regulate the industry and the issuance of licenses to several private insurers.
- Major private insurers that entered the market include HDFC Life, Max Life, ICICI Prudential, Bajaj Allianz, among others, many of which formed through joint ventures with foreign partners.
A project report on customer perception towards insuranceProjects Kart
The document provides an introduction and overview of the insurance industry in India. It discusses the history and evolution of insurance from ancient times to its nationalization in India in the 1950s. It also summarizes the key types of insurance like life and non-life insurance. The insurance industry in India is categorized into public and private sector for both life and non-life insurance. It provides a breakdown of the major players in both life and non-life insurance sectors in India.
insurance by teferi (1).pptx ethiopian tax lawSaabbaaMan
The document discusses the nature of insurance contracts and policies. It defines insurance as a contract where one party agrees to pay a sum of money or provide indemnification to another party if a specified risk occurs, in return for a premium payment. An insurance policy is the document containing the terms of the insurance contract. The key aspects covered include distinguishing insurance from gambling, the principle of insurable interest, indemnity basis of property/liability insurance versus agreed sum basis of life/health insurance, and definitions in Ethiopian commercial law.
Insurance is a means of protection from financial loss and a form of risk management. It involves an insured assuming a small known loss of paying a premium to an insurer in exchange for the insurer's promise to compensate for larger covered losses. There are various types of insurance like life, health, car, home, and education insurance that provide protection against different risks. Insurance plays an important role by spreading risks and costs to provide financial and medical support. It also provides tax benefits and is essential for protecting individuals and businesses from uncertainties.
Insurance intermediaries serve as the critical link between insurance companies and consumers. They facilitate the placement and purchase of insurance and provide services to both insurers and policyholders. There are two main types of intermediaries - insurance agents, who represent insurers, and insurance brokers, who represent policyholders. Intermediaries advise consumers, present insurance options, and assist with placing coverage, claims management, and risk management. They are an essential part of insurance supervision and distribution.
Insurance is a contract where an individual or entity receives financial protection from losses in exchange for paying premiums. Companies pool risks to make premiums affordable. There are two main types of insurance - life insurance which pays out a sum when a person dies, and non-life insurance which covers other losses or liabilities. Within these are various products like health, property, vehicle and travel insurance. Regulations ensure customer protection and industry growth.
Insurance is a mechanism for mitigating risk whereby individuals and entities protect themselves from financial loss by transferring their risks to an insurance company in exchange for a fee called a premium. It involves spreading risk among many individuals or entities to help offset the cost of unexpected losses or disasters. The key parties involved are the insured or assured who takes out the policy, the insurer or assurer who underwrites the risk, and the subject matter which is being insured such as a person's life or property.
This document provides an overview of the insurance industry in India. It discusses key concepts like the insurer, insured, and policy. It outlines the history of insurance in India dating back to 1850 and the nationalization of insurance companies in 1956. It also describes the main types of insurance like life, fire, marine, and general insurance as well as principles of insurance such as insurable interest, indemnity, and mitigation. The advantages of insurance for protection, investment, and industrial development are highlighted.
This document provides an introduction to a study on consumers' perceptions of life insurance policies. It discusses how life insurance is important for protecting families financially in cases of death or loss of income. The study aims to understand how consumer perceptions of service quality and product quality differ between life insurance policies offered by different companies. It also provides background definitions and context on insurance, including the different types of insurance, the importance of insurance for society and the economy, and the evolution of the insurance industry in India.
Welcome to the global business guide. In this context, we will be taking about the insurance industry, the general definition of insurance, adequate and
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PRESENTATION ON “ STUDY OF SALES PROMOTION’’ AND “ANALYSIS OF INSURANCE B...Muthoot finance Ltd
Meaning of INSURANCE ,Indian Insurance Industry Overview Types of Insurance ,Examples of INSURANCE Company ,How does insurance work?, tax benefits on insurance
This presentation is all about insurance. It will cover some topics.
1-What is Insurance ?
2-Why Insurance ?
3- Type of Insurance
4-What is Risk?
5- Peril and Hazard
6- Transfer of Risk ?
7- Mitigation
8-WHAT IS GENERAL INSURANCE ?
9- Type Of General Insurance
10- Insurance Company Operations
11- Underwriting, Claims Settlement
12- Reinsurance
Insurance is a promise of compensation for potential future losses in exchange for periodic payments. It protects against financial risks from unexpected or contingent losses. Insurers make money through underwriting risks and collecting premiums, which they invest. When claims are made, adjusters work to settle claims according to the terms of policies. Globally, insurance premiums totaled $4.3 trillion in 2008, with Europe as the largest market. The insurance industry has expanded globally but also faces criticism as sometimes engaging in rent-seeking behaviors.
This document provides an introduction to insurance. It discusses what insurance is, the key parties involved (insurer, insured, beneficiary), and underwriting. It also outlines some of the basic principles of insurance, including insurability, legal requirements like indemnity and insurable interest, and the impacts of insurance like moral hazard and fraud. Finally, it discusses how insurance firms operate businesses through underwriting, investing premiums, and managing claims.
Fire insurance protects people from financial losses caused by fires. It involves sharing fire-related losses incurred by some through contributions to a common fund by all who are exposed to fire risk. Fire insurance pays for losses that are unexpected and occur due to chance. It aims to restore the insured's financial position prior to the loss through the principle of indemnity.
General insurance companies provide financial protection against losses from events like fire, floods or theft. They earn income from premiums paid by policyholders and investment returns. Premiums cover costs like claims payments, expenses and dividends. Investment returns depend on market conditions and vary yearly. Reliance General Insurance offers over 80 insurance products across categories like personal accident, fire, marine, motor, health and travel. It aims to make insurance accessible through branches across India and online services. The company follows quality standards and received ISO 9001:2000 certification.
Insurance for beginners joining the industry. Compiled collected writeup with input. Freelance picked most common and easy to grasp explanations that logically fall an uninterrupted line of thought
This document provides an overview of insurance, including definitions of key terms like insurer, insured, and importance. It also summarizes different types of insurance like life, health, fire, marine, and principles of insurance. Regulations of insurance by the Insurance Regulatory and Development Authority of India are discussed. Acts governing insurance in India are also outlined.
This document defines insurance and outlines key terminology used in the insurance industry such as policy, premium, insured, and indemnity. It discusses various principles of insurance contracts including utmost good faith, indemnity, insurable interest, and proximate cause. The document also categorizes different types of insurance like life, fire, marine, and general insurance. It provides examples of life and general insurance policies. Additionally, it defines roles of insurance intermediaries like agents, brokers, surveyors, and TPAs. Finally, the document outlines different types of risks covered by insurance like systematic, unsystematic, credit, country, and foreign exchange risk.
- Insurance is a form of risk management that transfers the risk of a potential loss from one entity to another in exchange for payment of a premium.
- Early methods of risk sharing date back to 3rd millennium BC in China and 2000 BC in Babylon, but modern insurance began in 14th century Genoa and London.
- Today, insurance covers a vast array of risks for individuals, businesses, marine, aviation, agriculture, life, health and more. Virtually anything can be insured.
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3. PROPERTY INSURANCE
Insurance is a form of RISK MANAGEMENT primarily used to
HEDGE against the RISK of a contingent, UNCERTAIN loss.
Insurance is defined as the equitable transfer of the risk of a
loss, from one entity to another, in exchange for payment.
An insurer is a company selling the insurance; an insured, or
policyholder, is the person or entity buying the insurance
policy. The insurance rate is a factor used to determine the
amount to be charged for a certain amount of insurance
coverage, called the premium. RISK MANAGEMENT, the
practice of APPRAISING and controlling risk, has evolved as
a discrete field of study and practice.
4. The transaction involves the insured assuming a guaranteed and known
relatively small loss in the form of payment to the insurer in exchange for
the insurer's promise to compensate (INDEMNIFY) the insured in the case
of a financial (personal) loss. The insured receives a CONTRACT, called the
INSURANCE POLICY, which details the conditions and circumstances
under which the insured will be financially compensated.
Insurance involves POOLING funds from many insured entities (known as
exposures) to pay for the losses that some may incur. The insured entities
are therefore protected from risk for a fee, with the fee being dependent
upon the frequency and severity of the event occurring. In order to be
insurable, the risk insured against must meet certain characteristics in
order to be an INSURABLE RISK. Insurance is a commercial enterprise and
a major part of the financial services industry, but individual entities can
also SELF-INSURED through saving money for possible future losses.
5. Claims
Claims and loss handling is the materialized utility of insurance; it is the actual "product" paid
for. Claims may be filed by insured’s directly with the insurer or through BROKERS or AGENTS.
Insurance company claims departments employ a large number of CLAIMS ADJUSTERS
supported by a staff of RECORDS MANAGEMENT and DATA ENTRY CLERKS. Incoming claims
are classified based on severity and are assigned to adjusters whose settlement authority
varies with their knowledge and experience. The adjuster undertakes an investigation of
each claim, usually in close cooperation with the insured, determines if coverage is available
under the terms of the insurance contract, and if so, the reasonable monetary value of the
claim, and authorizes payment.
6. The policyholder may hire their own PUBLIC ADJUSTER to negotiate the settlement with
the insurance company on their behalf. For policies that are complicated, where
claims may be complex, the insured may take out a separate insurance policy add
on, called loss recovery insurance, which covers the cost of a public adjuster in the
case of a claim.
If a claims adjuster suspects underinsurance, the CONDITION of AVERAGE (co-
insurance) may come into play to limit the insurance company's exposure.
In managing the claims handling function, insurers seek to balance the elements of
customer satisfaction, administrative handling expenses, and claims overpayment
leakages. As part of this balancing act, FRAUDULENT INSURANCE PRACTICES are a
major business risk that must be managed and overcome. Disputes between insurers
and insured’s over the validity of claims or claims handling practices occasionally
escalate into litigation (see INSURANCE BAD FAITH).
7. HISTORY OF INSURANCE
In some sense we can say that insurance appears simultaneously with the
appearance of human society. We know of two types of economies in
human societies: money economies (with markets, money, financial
instruments and so on) and non-money or natural economies (using barter
and trade without a centralized and/or standardized set of monetary
instruments). The second type is a more ancient form than the first.
In such an economy and community, we can see insurance in the form of
people helping each other. For example, if a house burns down, the
members of the community help build a new one. Should the same thing
happen to one's neighbour, the other neighbours must help. Otherwise,
neighbours will not receive help in the future. This type of insurance has
survived to the present day in some countries where modern money
economy with its financial instruments is not widespread.
8. Turning to insurance in the modern sense (i.e., insurance in a modern money economy,
in which insurance is part of the financial sphere), early methods of transferring or
distributing risk were practiced by CHINESE and BABYLONIAN traders as long ago as the
3RD and 2ND MILLENNIA BC, respectively. Chinese merchants travelling treacherous river
rapids would redistribute their wares across many vessels to limit the loss due to any
single vessel's capsizing. The Babylonians developed a system which was recorded in
the famous CODE OF HAMMURABI, c. 1750 BC, and practiced by early MEDITERRANEAN
sailing MERCHANTS. If a merchant received a loan to fund his shipment, he would pay
the lender an additional sum in exchange for the lender's guarantee to cancel the loan
should the shipment be stolen or lost at sea.
A thousand years later, the inhabitants of RHODES invented the concept of the
GENERAL AVERAGE. Merchants whose goods were being shipped together would pay
a proportionally divided premium which would be used to reimburse any merchant
whose goods were deliberately jettisoned in order to lighten the ship and save it from
total loss.
9. The first insurance company in the UNITED STATES underwrote fire insurance and was
formed in Charles Town (modern-day CHARLESTON), SOUTH CAROLINA, in 1732.
BENJAMIN FRANKLIN helped to popularize and make standard the practice of
insurance, particularly against FIRE in the form of PERPETUAL INSURANCE. In 1752, he
founded the PHILADELPHIA CONTRIBUTIONSHIP for the INSURANCE OF HOUSES from
LOSS by FIRE. Franklin's company was the first to make contributions toward fire
prevention. Not only did his company warn against certain FIRE HAZARDS, it refused
to insure certain buildings where the risk of fire was too great, such as all wooden
houses. In the United States, REGULATION of the insurance industry is highly
Balkanized, with primary responsibility assumed by individual STATE insurance
departments. Whereas insurance markets have become centralized nationally and
internationally, state insurance commissioners operate individually, though at times in
concert through a NATIONAL INSURANCE COMMISSIONERS’ ORGANIZATION. In
recent years, some have called for a dual state and federal regulatory system
(commonly referred to as the OPTIONAL FEDERAL CHARTER (OFC)) for insurance
similar to that which oversees state banks and national banks.
10. PROPERTY INSURANCE
This TORNADO damage to a home would be
considered an “ACT of GOD" for insurance purposes
originally but with advanced policy wordings today it
would be covered as Property insurance provides
protection against risks to property, such as FIRE,
THEFT or WEATHER damage. This may include
specialized forms of insurance such as fire insurance,
FLOOD INSURANCE, EARTHQUAKE INSURANCE, HOME
INSURANCE, inland marine insurance or BOILER
INSURANCE. The term property insurance may be
used as a broad category of various subtypes of
insurance, as shown in the following slides:
11. Home insurance
Home insurance provides coverage for damage
or destruction of the policyholder's home. In some
geographical areas, the policy may exclude
certain types of risks, such as flood or earthquake
that require additional coverage. Maintenance-
related issues are typically the homeowner's
responsibility. The policy may include inventory, or
this can be bought as a separate policy,
especially for people who rent housing.
12. HURRICANE KATRINA caused over $80bn of storm and flood damage
- FLOOD INSURANCE protects against property loss due to flooding. Many
insurers in the U.S. or Canada do not provide flood insurance in some parts
of the country. In response to this, the federal and or a state/provincial
government created the NATIONAL FLOOD INSURANCE PROGRAM which
serves as the insurer of last resort.
- HOME INSURANCE, also commonly called homeowners insurance, is the
type of property insurance that covers private homes.
- LANDLORD INSURANCE covers residential and commercial properties which
are rented to others. Most homeowners' insurance covers only owner-
occupied homes.
13. THE PLAYERS
Claims adjusters investigate insurance claims by
interviewing the claimant and witnesses, consulting police
and hospital records, and inspecting property damage to
determine the extent of the company’s liability. Claims
adjusters have the knowledge to complete the preparation
of a property damage claim which, to an unrepresented
homeowner, may be unfamiliar territory. The documents
contain technical terms such as depreciation, replacement
costs, and actual cash value, that may be unknown to the
policyholder and a trained claims adjuster can ensure a
correct completion.
14. There are several classes of claims adjusters:
• staff adjusters (employed by an insurance company or self-insured entity),
• independent (independent contractors; not insurance company employees)
• public adjusters (employed by the policyholder).
• Claim Service Representatives (employed by the Insurance Company, or
Independent Adjusting Company).
In the two first instances, and the fourth, the adjuster operates on behalf of the insurer.
Adjusters may handle "property claims" involving damage to buildings and structures, or
"liability claims" involving personal injuries or third-person property damage from liability
situations, such as motor vehicle accidents, slip and falls, dog bites, or alleged negligent
behavior. Some adjusters handle both types of claims and are known as "Multi-Line"
adjusters. Also "All Lines Adjusters" may handle "any" type of claim already identified
and also include Professional Liability, Hospital Professional Liability, Excess Liability,
Physicians and Surgeons Liability, Aircraft Liability/Hull, Inland Marine, Ocean Marine,
Boiler and Machinery, as well as various types of Bond Losses.
15. Claims Service Representatives employed by both independent adjusting firms and
insurers usually operate from behind a desk and do not go out into the field by rather
provide the basic paper work, and dispatch a field adjuster or restoration contractor to
the claim and have them report back to them. They are commonly called a telephone
adjuster and are becoming more common than ever before since Call Centers are now
starting to become a common appearance. Their authority is usually very limited and
must report back to a claims examiner.
Public adjusters work exclusively for the policyholder. This means there should be no
inherent conflict of interest when it comes to advocating on the policyholders behalf to
the insurance company.
An independent adjuster could be working for multiple insurance companies or self-
insured entities.
An adjuster will frequently verify that coverage applies through an insurance policy,
investigate liability for the damages caused, and make compensation to the injured
person based on their emotional or physical property damages.
16. Many homeowners reach a fair settlement with the staff or independent adjuster they are
working with. In the event they are not, they can hire a public adjuster. Public adjusters
claim that many homeowners do not collect all the money to which they are entitled due
to a lack of familiarity with the claim process.
The use of a public adjuster may mitigate this risk and could help put the policyholder on
a more equal footing with the insurance companies, which increasingly use experts to
support their side of a claim settlement. Public adjusters charge for their services, the
standard rate is 10% of the claim settlement.
For example, If you suffer a $250,000.00 fire loss, the public adjuster fee for assisting you
would be $25,000.00 This $25,000.00 is taken out of your claim settlement.
The objective of a claims adjuster should be to protect the insured against not only
financial loss, but also the cost of recovering it.
17. Specific duties include:
• Responding to claims in a timely manner
• Filing paperwork
• Communicating with policy holders
• Investigate liability
• Assess damages
• Research, detail and substantiate each aspect of the claim, including building
damage, contents, and extra living expense claims.
• Negotiate with product/service providers on time and cost of repairs for the purpose
of making an offer of settlement to the insured.
• Ensuring accurate procedures
• Protect the interest of the insurance company the adjuster represents, when dealing
with claimants.
• Computer Skills with a high degree of proficiency.
Many claims adjusters may work long hours. Claims adjusters frequently work nights and weekends
because they have to make appointments to see their clients, so the adjuster must be able to adapt their
schedules in order to accommodate their clients.
18. The more experienced claims adjusters are able to work from home. They will receive their
work load for that day through their private fax machine or their email accounts. The most
common claim adjusters receive their assignments when they arrive at the office first thing
in the morning. In the case of a severe natural disaster such as floods or tornadoes,
adjusters from another city or town are called in to support the local government. This
results in the adjuster being away from home for days at a time until all claims are
resolved.
Computer skills are essential, including keyboard skills. Most insurance companies store all
documentation digitally. Estimates, including auto and property losses, are prepared on
computers connected to a corporate network. Laptop computers, cell phones, and other
technology have made the process of claims adjusting easier and it consumes less time;
however, there are positions that require physical strength as well as stamina. Property
adjusters, for example, many times are required to operate a 50-pound ladder, able to
stand, walk, kneel, crawl, and other physical demands as they investigate property that
has been damaged.
A Loss Consultant is considered as part of Financial Services in most states and provinces
therefore do not charge and provincial, state of federal tax such as PST, GST or HST. Their
duties are to be instrumental in determining value for an insurer. They will provide report
and advice on the following services.
19. Underwriting Reports (before the loss occurs) in the form of a Reproduction Appraisal Report is
based upon the Calculator Method of Costing which will be determined by square foot valuating
of the finished floor areas, along with square foot adjustments, and additional feature adjustments.
The rates are based upon design group, building design, class of construction, quality of
construction, exterior finish, interior finish, mechanical, electrical, size, age, condition, climate, and
site logistics (size of building, weather conditions, area, terrain, type of construction, location, etc.).
It will give values for Building Replacement Cost, Occupancy Design Fixture Costs, Bylaw Costs,
Demolition and Debris Removal Costs, Guaranteed Replacement Surcharge Cost, and the
Depreciation Percentage. It will also give photo overviews of the building, footprints, etc.
This appraisal provides the following recommended individual policy limits for the building in order
to evaluate coverage limits for an insurance policy. These limits include the following:
• Replacement Cost (RCV)
• Occupancy Design Fixtures (ODF)
• Bylaw Coverage (BC)
• Demolition & Debris Removal (DDR) [includes recycling charges, site security costs, abatement
costs, emergency service costs, structural drying costs, etc.]
• Catastrophic Cost Value (CCV) [in the event of a natural or manmade disaster labour and
materials will normally increase]
• Depreciation Applicable (ACV)
20. Loss Reports (after the loss occurs) in the form of a Reproduction Appraisal Report as mentioned
above.
Damage Assessment Reports - Once a large loss has occurred, limits on the insurance policy
may not be sufficient and co-insurance may come into play. Therefore when a building, be it
agriculture, commercial, industrial, institutional, or residential is damaged to this magnitude,
conserving every penny spent on the loss is crucial. The most cost effective method of
determining value is a Damage Assessment Report and scopes of damage and estimates by
restoration firms are really redundant and are not cost effective.
Since every loss is not a total loss, the Assessment of Restoration should reflect costs for cutting
and patching to existing construction; dust protection; material handling & storage; protection
of existing finishes; shift work requirements; temporary shoring & bracing; equipment usage
curtailment; and work inside secure premises, where applicable. All of these conditions are
associated with retrofitting replacement material for partial losses.
21. This report will include:
• a description of the construction of the property
• a footprint of the building
• extent of damage
• scope of damage for repairs
• assessment of restoration, and
• a general time frame for reconstruction
This report provides an Extent of Damage, Scope of Damage and a Damage Assessment for both
Replacement Cost Values (RCV) and Actual Cash Value Values (ACV).
Forensic Reconstruction is a specialty area whereas the consultant reconstructs with like, kind,
quality, Scopes of Damage or Repair and an Assessment of Restoration of losses which may or may
not result in an actual or anticipated dispute or litigation. It takes years of experience in
collaborating with adjusters, claims examiners, lawyers, engineers and other industry experts that so
that their reports are suitable for use in a court of law, and it is to that standard and potential
outcome that they generally have to work as forensic or investigative auditors when it comes to
insurance claims. These reports for use in court cases presentation include: reason for the report,
qualifications, problem identification if known, photographic documentation if available, scope of
damage or repair, breakdown of costs, and identify individual costs such as bylaws and code
upgrade, stabilizing and securing the building, catastrophic or conditions of risk increase in costs,
and actual cash value.
22. File Audits - So you think you have done everything right. There was an assigned
approved insurance contractor to complete the restoration and the project was put
out to bid. But why did the costs escalate and the insured is not happy with the
results? There are a number of reasons why. Outside influences such as government
bodies can directly impact the how the restoration process is going to take place.
There really is no control over these situations and inevitably the construction costs are
directly impacted by decisions a government body can make concerning the
restoration process.
A Loss Consultant can provide a simple audit after the job is complete or a more
complicated ongoing file audit while the job is in progress until it is finished to ensure
that proper sufficient documentation is in the file.
Large Loss Coordination - Often overlooked, after a loss has occurred, is who
coordinates the site? This is usually a more critical decision than who does the
restoration work.
23. Without competent supervision, restoration contractors and the inevitable construction
problems that arise during a project can quickly cause the loss to get out of control. Most
restoration projects are site managed by the restoration contractor. Letting the
contractor have a "free rein" to make decisions may seem harmless, until you consider
the consequences.
When a restoration contractor is placed in a bid situation, this usually means stripping
away restoration details that could be considered frivolous but are still part of the quality
of construction that the insured had before the loss occurred. Saving money on the
project costs is now the contractor's priority.
Restoration project site management requires extensive and diverse restoration
experience. Assessing the conditions, scoping the damage, and estimating the cost of
the restoration correctly, the site manager should be able to have the project
completed in an efficient and timely manner, staying within budget.
24. Although a competent restoration contractor can handle the daily site management,
who do you think he's going to protect? The coordinator provides a site management
service to protect the integrity of the loss and the restoration cost. By the time a
contractor has made the decisions to make changes in the scope of the damage to
the property, getting it back on track can be very expensive. If you don't challenge
these decisions, you imply acceptance. Trying to get the contractor to correct the
deficiencies after they have completed a phase and covered things up is nearly
impossible. Preventing this is the role of the coordinator.
Outside influences such as government bodies can directly impact how the restoration
process is going to take place. If the insured is not confident that the contractor can
effectively manage this, then a large loss coordinator has the experience to negotiate
terms to a successful solution. We have many years of experience keeping a project on
course. We manager can speak their language, and effectively communicate
directions and concerns, to the contractor.
25. To know when to stop a project before costs and problems get out of control is often
the most cost effective decision to make and know when to make that call can save
money, legal costs and a restoration nightmare! Change orders in the rebuilding
process should be issued by the coordinator and not at the request of the contractor.
It should always be the adjuster’s or the insured's decision to make changes, not the
contractor's!
A Loss Consultant will scope the damage, assess the conditions of the risk, estimate the
cost of repair, provide a schedule of the work to be performed, provide all necessary
loss reports and revisions, qualify the contractor, attend all site meetings with engineers,
inspectors, etc., provide site supervision, quality control inspections, etc. and provide
weekly status reports, until the completion certificate is signed and the deficiencies are
corrected to the satisfaction of the insured.
An independent broker's obligation to his insured is to assist him if he is having any
difficulty or concerns expediting his claim, especially if he is not pleased with the
insurance repair contractor appointed by the insurers or the general handling or
settlement of his claim. If the broker and insurer is the same (commonly called a direct
writer), or the broker is a managing general agent, then the insured cannot be duly
represented fairly and an independent party such as a coordinator can step in to
resolve the situation.
26. Claims adjuster and the claims examiners do have very heavy workloads; therefore it
would not be unreasonable for a file to be ignored or to fall between the cracks. Even
turning these duties over to an approved restoration contractor can have negative results
if the restoration contractor does not recognize that the extent of the claim needs more
attention than just simply putting back what was originally there before the loss occurred.
Then there is a Remedial Management sector that is a Consultant who has his own project
manager on staff that will handle a difficult loss which usually one that fall outside the box
of a normal property loss whereas your average approved restoration contractor cannot
handle due to volume of work and time restraints. Here the consultant can move the claim
along at the speed it needs to go in order to produce solutions and resolution to the loss
because of its complexity. These types of losses are handled a little differently in the fact
that they are managing the claim for the insurer and will be working on their advanced
draws. The Consultant would probably handle one or two of them a year and each would
be in the range of five figures or more.
There are three major kinds of engineers that property claims really need to address a loss.
They are structural, building envelope, and geotechnical types. The other categories such
as mechanical electrical etc. are specialized and maybe required at the say so of the
primary engineer.
27. Engineers should be brought in when the structure appears to be unsafe to enter the
building, and again after the emergency service has been performed and the demolition
and debris removal completed before any reconstruction takes place. This is the biggest
mistake adjusters, and restorers make, by bringing in the engineer in the beginning and not
following up with another site visit by the engineer to see the site after the demo and
debris removal.
28. IF THE ONLY THING YOU REMEMBER OF THIS SLIDE SHOW IS
THIS ON THE NEXT PAGE IS
INSURE TO VALUE!!!!!!!
WE HAVE DONE OUR JOB!
29.
30. There once was an adjuster who liked to man the outback
of his firm’s locations so they sent him to Northern Alberta.
He was stationed in their Peace River office, and today you
can find him wandering the streets of Peace River.
Moral of the story is shown on the next slide.
Be careful of what you wish for.
31.
32. Older buildings, and many newer buildings, were built during times when building codes
were less strict than they are today. If you are rebuilding or restoring a building, you may
need to meet the newer and more demanding building codes. Even undamaged parts
of the structure may have to be rewired or plumbed to meet current codes. Building
codes may also require you to replace windows with safety glass or replace roofs with fire-
retardant materials. Building code changes can add tens of thousands of dollars to the
cost of restoring a damaged building.
Obsolescence of material and labour practices can invoke the Principle of Substitution on
a regular basis in today’s marketplace; therefore quality of like kind must be monitored
closely. Dangerous materials can also lurk in these buildings which can render the
undamaged portion of the building obsolete.
If you have a building that you think falls within these parameters, call one of us for a free
consultation today.
Al Brown al.integral@shaw.ca (250) 681 – 3161
Dan Lambert dan.lambert2013@yahoo.ca (604) 657 – 2545
Dave Lemay dlemay@live.com (778) 347 – 0417
Ron Wilkes integral@shaw.ca (604) 614 - 8350
33. The Associated Restoration & Replacement Network (ARRN) is a consortium of Property
Loss Consulting Firms who's members have in excess of a quarter of a century of
experience in this field and have access to all faucets of services for remediation of
property.
On behalf of all of us at the ARRN, thank you for taking time out of your busy
schedule and attending this presentation.