4-Insurance as a risk management technique principles

《4-Insurance as a risk management technique principles 》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。

1、RiskManagementandInsuranceInsuranceasaRiskManagementTechnique:PrinciplesChapter6ChapterObjectivesØDefineinsuranceandexplainhowitdiffersfromothermethodsofrisktransferØIdentifysituationsthatgiverisetoinsurableinterestandexplainhowthisprinciplesupportsthepri

2、ncipleofindemnityØStatehowthesubrogationprocessworksandhowitisusefulØDeterminewhatmakesariskinsurableØListthelegalrequirementsofacontractanddescribethedistinguishinglegalcharacteristicsofinsurancecontracts2InsuranceTransferofthefinancialconsequencesofalos

3、sexposuretotheinsurerinexchangeforthepaymentofapremium.TheNatureofInsuranceØInsuranceinvolvesnotonlyrisktransferbutalsopoolingandriskreductionlPooling:ThesharingoftotallossesamongagrouplRiskreduction:Adecreaseinthetotalamountofuncertaintypresentinaparticu

4、larsituationüInsurersaccomplishthisbycombiningagroupofobjectssituatedsothattheaggregatelossesbecomepredictablewithinnarrowlimits4TheNatureofInsuranceØOverallriskforthegroupisreduced,andlossesthatresultarepooledlUsuallythroughthepaymentofaninsurancepremium

5、ØInsuredstransfervariousriskstothegroupandexchangeapotentiallylargeuncertainlossforarelativelysmallercertainpayment(thepremium)5TheNatureofInsuranceØGamblingandinsuranceareexactoppositeslGamblingcreatesanewriskwherenoneexistedbeforelInsuranceisamethodofel

6、iminatingorgreatlyreducinganalreadyexistingriskØInsuranceisusuallyimplementedthroughlegalcontracts,orpolicieslInsurerpromisestoreimbursetheinsuredforlossessufferedduringthetermoftheagreementlImplicitistheassumptionthattheinsurerwillbeabletopaywhateverloss

7、esmayoccurüImportanttoconsiderthefinancialconditionoftheinsurer6PrincipleofIndemnityØTheprincipleofIndemnitystatesthatunderthepolicyofinsurance,theinsuredhastobeplacedafterthelossinthesamefinancialpositioninwhichhewasimmediatelybeforetheloss.PrincipleofIn

8、demnityØOneofthemostimportantpreceptsformanytypesofinsurancelParticularlypropertyinsuranceØTheinsuredmaynotcollectmorethantheactuallossintheeventofdamagecausedbyaninsuredperillServestocontrolmoralhazardsthatmightoth