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Insurance Lecture 15 Jan
Insurance Lecture 15 Jan
distributed among policy holders. The amount is taken from the premium
paid by each of the policy holders
Example: A, B, and C contracted a fire insurance from X. If C's house
caught fire, X will get an amount from the common fund to pay C
CONSENT REQTS:
Generally, consent of person insured is not required, as long as there is
insurable interest at the beginning.
In life insurance, insurable interest must exist at the beginning. For a
property, insurable interest must exist at the beginning and when the event
happens. The insurable interest may not exist in between that time.
For example: A insured his house then sold it. Then, he repurchased the
house. The house was destroyed by fire. At that point, A has insurable
interest.
The wife does not need hubby's consent to insure her life (or property) or
the kids' life.