Business Property Insurance is an arrangement by which several insurance companies participate or share. Risk is usually a large risk and each company’s acceptance is stated by way of a percentage of share in the policy.
Reinsurance arrangement
It is different from the reinsurance arrangement. In this arrangement insured is informed of the participants and their percentage of share in the risk underwritten. In reinsurance, the participant companies in the reinsurance arrangement are usually known to the leading or original insurer. But not to the insured.
Corollaries Insurance
Corollaries of the Insurance business are governed by certain principles. Doctrines known as corollaries of insurance namely (1) Indemnity (2) Utmost Good Faith (3) Proximate Cause (4) Subrogation and (5) Contribution. The principle of contribution applies to property insurance where more than one Business Property Insurance company participates in risk and pays part of its share (pro rata settlement) in the event of loss and/or destruction of the insured property.
Compound Interest
Interest is paid on both is an arrangement by which several insurance companies participate or share a risk usually a large risk an original principal sum and the accrued interest. A consignor is a party stated in the marine cargo policy for example a manufacturer, supplier, distributor, etc. who exports goods merchandise to another party known as a consignee.
The term consignee is used in marine (Cargo) insurance to denote a person or a party stated in the marine insurance policy or certificate who owns the imported cargo or to whom cargo or goods are sent or dispatched.
Marine Hull Insurance
This term is usually used in marine hull insurance. Constructive Total Loss is considered by the hull insurer under the following circumstances 1) When the subject matter of insurance suffers a loss beyond economical repair or(2) When the cost of recovery outweighs or exceeds the value of insurance.
Convertible Term Insurance
Life assurance contract effected for a certain time period which carries a provision allowing it to be changed or converted into another form of life coverage such as endowment policy etc.
Protection or financial security is provided under Business Property Insurance. An agreement is usually in black and white between two or more parties that are legally enforceable.
Insurance Company
It is a factor whereby an insurance company is willing to accept or carry certain risks and promises to pay loss or compensation under an insurance contract in exchange for an agreed amount of money known as a premium. Settlement of a valid claim under an insurance contract. It is based on actual loss which does not take into consideration the profit element.
Applicable to property insurance
Banks and other non-banking financial institutions take property as a guarantee or security from the borrower against loan money.
They repay the loan amount, these institutions recover the loan money by selling the property deposited with them. Common law is the oldest form of law recognized by the court based on ancient unwritten rules.
Social justice
It is based on equity and social justice. Complex in nature and has been written into law which covers both aspects of civil Business Property Insurance. It Co-Insurance Contribution is an arrangement by which several insurance companies participate or share a risk usually a large risk can be altered and modified by statutory or written law.
A Commercial Invoice is documentation issued by the seller or the supplier of goods to the buyer. It contains a description of goods.So, the value of each unit of goods, and the total value of goods.
Party Contributes
It is a principle whereby the insured party contributes a percentage of the loss along with the insurance company due to his/her error or negligence causing loss or damage. A temporary assignment of the monetary value of a life insurance policy as security for a loan. So, In the event of default, the creditor would receive proceeds or values only to the extent of his interest.
Combined Single Limit.
This usually applies to the liability class of the insurance business. Where the insurance company sets an upper single limit for payment of losses.
For example, instead of paying two different levels of compensation one for death and one for property damage. To the third party, the insurance company can only pay one single amount for both.
It represents a ratio Co-Insurance Contribution is an arrangement by which several insurance companies participate.
Large risk of the premium
Risk is usually a large risk of the premium income but underwritten premium to (1) claims paid and claims outstanding and (2) expenses incurred and commission paid. So, It is a kind of remuneration paid by the insurance company to insurance agents or brokers for selling their Business Property insurance products to members of the public, business organizations, etc.
Commercial General Liability Policy
Often referred to as the CGL. This policy provides broad protection against situations. However, businesses must defend themselves against lawsuits or pay damages for personal. Injury or property damage to a third party.
Automobile Insurance
Comprehensive Automobile Insurance Protection against loss resulting from damage to the insured vehicle. Broad cover-death, Property damage to the third party. It also provides protection in respect of physical-age is provided.
So, It includes protection of the vehicle from such hazards as (1) fire (2) theft(3) collision (4) Hail storm and (5) Malicious damage, and (6) Bodily injury and or cal damage to third-party property, and/or bodily injury and/or death to the third party.
Legal liability
Protection for an insured against loss arising out of his or her but legal liability to pay money for damage or injury he or she has caused to others in the course of personal and private activities does not include automobile liability and business operations or business activities of the insured.
Compound Bonus
The rate of bonus each year is a percentage of the basic sum assured but, bonuses were added in the past. The commercial Line of business includes various insurance requirements of business organizations such as Firms, corporations, etc. namely FireLoss of profit, Motor fleet Fidelity Guarantee Theft insurance, etc.
Conclusion
However, it does not deal with individual insurance requirements. Concealment means withholding or suppression of material facts or information by the proposer while applying for insurance coverage.
Read: Business Interruption Insurance policy pays for loss of earnings.
