What Kind Of Financial Agreement Is Undertaken Between An Insurance Company And

In insurance, the insurance policy is a contract (usually a standard form contract) between the insurer and the policyholder, which determines the fees that the insurer must pay legally. In exchange for a first payment, called a premium, the insurer promises to pay for losses caused by watery hazards that fall within the language of insurance. However, in recent years, insurers have increasingly modified standard forms in a company-specific manner or refused to change standard forms. For example, a review of household insurance revealed significant differences in the various provisions. [34] In some areas, such as directors` and officers` liability insurance[35] and personal insurance on the roof,[36] there is little industry-wide standardization. Insurance contracts have traditionally been written on the basis of each type of risk (for which risks have been defined very precisely) and a separate premium is calculated and charged for each of them. Only the specific risks expressly described or “considered” in the directive were covered; This is why these guidelines are now referred to as “individual” or “schedule” guidelines. [13] This system of “designated hazards”[14] or “specific dangers”[15] proved untenable in the context of the Second Industrial Revolution, as a typical large conglomerate could have dozens of types of risks that can be insured against. For example, in 1926, a spokesperson for the insurance industry indicated that a bakery had to purchase a separate policy for each of the following risks: manufacturing operations, elevators, teamsters, product liability, contractual liability (for a track that connects the bakery to a nearby railway), domestic liability (for a retail store) and the responsibility of protecting owners (negligence of contractors responsible for construction modifications). [13] The insurance contract or contract is a contract by which the insurer promises to pay benefits to the insured or, on its behalf, to a third party if certain events occur. Subject to the “Fortuity” principle, the event must be uncertain. The uncertainty may be either when the event will occur (for example. B in life insurance, the date of the insured`s death is uncertain) or whether it will occur (for example.

B in fire insurance, whether or not there is a fire). [4] The immediate case once again shows the dangers of the current complex structuring of insurance policies.