Globe Life Insurance is a temporary insurance arrangement. Whereby the original or primary insurer has accepted the risk and offers a part or share of the risk to other insurance or reinsurance companies. Insurance companies or reinsurance, who are offered the risk, are within their right to accept or reject the offer and have no bindings to oblige the primary insurer.
Reinsurance Arrangement
This sort of reinsurance arrangement is cumbersome and time-consuming, expensive in terms of administrative costs involved in placing reinsurance.
So, a life insurance policy that provides a regular fixed income to the family of the deceased. The income payment starts upon the death of the life insured and continues for the balance of the specified period.
Expense Ratio
The ratio of all operating expenses is divided by the premium written. In insurance terms, exposure means risks or hazards which a business is likely to face or experience during the course of its activities. The amount stated on the face of a life insurance policy will be paid either upon death or policy maturity.
It does not include dividends, additions, or additional amounts payable under accidental death or other special provisions. All insurance contracts have certain exclusions under the policy. This is usually divided into two sections named such as(1) general exclusions and (2) specific exclusions. The expenses which a life office will incur in administering its policies.
Express Warranty
Specific conditions stipulated in an insurance contract impose restrictions. The insured is to refrain from doing certain activities on the insured premises. Imposing conditions as to risk improvement to be undertaken or carried out. The insured during the tenure of the policy date. which the validity of an insurance contract expires or terminates.
Extended Coverage The original insurance contract may be extended. To increase or widen the scope of cover, including special conditions, etc. through the issuance of an endorsement. A person possessing a greater than average likelihood of loss.
Loss Expenses
In fire insurance treaties FBC is shown separately. This may be included in loss expenses. Globe Life Insurance protects employers from the infidelity of employees. It covers(1) Embezzlement of funds, (2) Misappropriations of money, (3)Theft of stock(4) Computer fraud, etc. A person who holds a position of special trust and confidence.
Fire Insurance
In the early days of fire insurance, it used to cover only the basic risks. The fire, lightning, and explosion of boilers are used for domestic purposes only. Nowadays in addition to the basic is a Globe Life Insurance arrangement. Whereby the original or primary insurer has accepted the risk and offers the covers mentioned above.
It also includes the risks of(1) Natural calamity or an Act of God. Namely, (a) Earthquake, (b) Strom/Cyclone, (c) Flood, (d) Tidal Surge, etc. (2) Malicious damage/ Vandalism, (3) Riots and Strikes, (4) Impact damage, (5) Burst of a water tank or pipe, etc. Together these additional risks or perils are known as special or allied perils.
Theft Insurance
This condition is usually applied in case of theft insurance. It is an option that may be taken up by the insured to receive some discount in premium under a theft policy. This condition is generally found favorable to those dealing with heavy materials namely cement, steel, iron safes, etc. where the possibility of theft of the entire stock is slim or remote.
Fleet Policy
A vehicle or motorGlobe Life Insurance that covers several vehicles belonging to or owned by an organization in one policy instead of issuing a separate policy for each vehicle is called a fleet policy. It saves administrative costs and time for the insurer.
This cover is available under a fire insurance policy whereby stock in various locations/premises within the geographical area is covered with an upper limit chosen by the insured (maximum value of the stock) on anyone location premises. So, Cargo cast or lost overboard and recoverable by reason of its remaining afloat
Claimant
A fraudulentGlobe Life Insurance filed by a claimant but intentionally attempts to collect policy proceeds by providing false information to the insurer. Fraudulent Misrepresentation is a false statement regarding the past or present material being a temporary insurance arrangement.
However, the original or primary insurer has accepted the risk and offers a fact that was made with the intent to induce the other party to enter into a contract.
Follow the Fortune Clause
Reinsurers of proportional treaties obligatorily accept all risks ceded within the framework of treaties. If a loss occurs and the reinsured ceding company decides to refute a loss but the reinsurers follow the fortune of the reinsured.
If he wins litigation the reinsures benefit but share loss expenses and if he loses the litigation, their reinsurers pay the loss including legal expenses, etc. Punitive damage awards are included in losses and reinsurers follow the fortune of the insured.
Accidental Damage
Sudden and accidental damage or loss that is unforeseen. However, it does not include deliberate, foreseen, or inevitable losses of any kind. Forensic Expert Specialists or experts whose services may be engaged at the will of the court in the investigation of loss or damage to property etc. For example, in case of a fire loss forensic experts may investigate the cause or source of the fire.
Freight Insurance
This type of insurance is purchased by the owner-operator of the cargo-carrying ship. The vessel protects its interest in the event of cargo owners. Consignees refuse to pay freight charges to ship owners/operators. Due to nonreceipt of goods by them because of cargo lost or damaged for whatever reason. Frequency and Severity.
Temporary Insurance
The repeated nature of a risk occurring is a temporary insurance arrangement. Whereby the original or primary insurer has accepted the risk and offers to result in a loss is known.
As frequency such as minor road accidents (in case of vehicle insurance) developing cough and cold (in case of sickness insurance) etc. Severity on the other hand means risk occurring not on a regular basis, But as and when it occurs it is severe in nature. Which causes extensive damage and destruction. For example, losses caused due to fire, storm, flood, earthquake, etc.
