C12 - Insurance on Property – Midterm Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+

Defining Property Insurance : -Protection against loss/damage to property -First party insurance -Premium exchanged for protection -Fortuitous losses (sudden and accidental) -Insurable interest -Intangible product Real vs Personal Property : R: buildings or land (can't be moved) P: office desk or machinery (can be transported) Promise that Property Insurance is based on : -Insured promise to pay a premium -Insurers promise to protect and indemnify 2 | P a g e Five elements of an Insurance Contract : 1. Agreement (offer and acceptance) 2. Capacity to contract 3. Consideration 4. Genuine intent 5. Legality Additional Features of Insurance Contract : 1. Insurable interest 2. Indemnity 3. Principle of utmost good faith Insurance Policy : -Formal agreement between parties -Outlines the terms and conditions -One year term -Claims 2 Types of Classes of Insurance : 1. Personal (habitational) 2. Commercial (building, equipment, stock