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6 Cards in this Set
- Front
- Back
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What features must be present for a risk to be insurable |
The event insured must be fortuitous Must be insurable interest Insuring the risk must not be against public policy |
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What is a fortuitous event? |
Must be accidental and not inevitable must not be in control of the insured. It must be unforeseen. |
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What is insurable interest? |
The link between the insured and the financial loss the insured suffers on the happening of an insured event |
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How does public policy effect contracts? |
Contracts cannot go against public policy/ what we believe is the moral thing to do. |
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Give an example of something that can't be insured due to public policy? |
Can't insure against incurring a fine for speeding. If you were able to it would encourage the act of speeding |
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What are homogeneous exposures? |
Given a sufficient number of exposures to similar risks the insurer can forecast the expected frequency and likely extent. |
