Personal

Prop & Casualty ins

Commercial
General insurance is also called Prop & Casualty ins.
Classified as personal & commercial
Personal lines: Auto, property and liability
Commercial : Auto, prop, liability, WC,equipment, marine, inland marine
Personal lines are for individuals:
1. Auto ins - are for private passanger type autos. primarily
to protect losses as a result of accident, insure liability arising out if accid
ent
Auto insurance coverage include: liability, physical damage,
medical payment, uninsured & inderinsured motorist coverage
2. Prop insurance - can be classified as prop coverage & liability coverage
3. Liability ins - protection from claims arising from injuries or damage to oth
er
for other party losses. ur person & property are unprotected
Personal liab include: auto liab, homeowner liab, medical payment and PIP
Commercial lines: refer to ins covering business, professionals & commercial est
b
Auto ins - Commercial auto ins covers liability exposures, prop loss exo, & pers
onal loss exp
Forms of commercial auto include - busi auto, garage, motor carrier
commerc Prop insuranc - helps businesses, farms, ranches to repair/replace build
ings
damaged in fire. replaces stolen/lost prop. ownwers can buy regardless of owners
hip
Liab ins - covers claims/law suits against indi or org.
they arise from advertising, busi ops, pollution, liquior, vehicles, premises et
c
WC - covers wage replacement & medical benefits to emps
equip breakdown - loss due to mech/electrical breakdown.
includes cost to repair/replace.
marine ins - covers boats, ships, cargo and place.
inland marine ins - outgrowth of ocean marine ins, covers loss to moving or mova
ble prop
recommended by agents to fill gaps in coverage.
Having inland marine as floater policy protects
Life, health and annuity - refers to life ins, health ins and annuity
Life ins- dates back to rome
Classification - traditional prods means term ins, wholelife ins, endowment

advanced prods include universal & variable universal policies

other products like group life, credit life, mortagage protecti
on
Traditional prods term deposits coverage for specific period
whole life policy for entire life of insured. prem is constant
Endowment - to pay lump sum specified, prem is cons. carries surrender value
Advanced prod Universal ins provides protection & savings element.
u get more flexibility coz u can shift money b/n ins & savings
Variable universal life holders can opt for universal & variable universal
offers alternate invst like stocks, bonds & mm. cash value placed in seperate a/
c
does not gurantee cash value. Policy owner has flexibility to make investment de
cision
with policy
Other products include group life and credit life or mortagage protection
Group life - provided under a group os assc program consists of
master plan contract & individual certificates. used by corporations to cover em
ployees, contain
annual renewable term policies.
eg- ACCenture insurance
Credit life - designed to cover repayment of loan, installment purchase
or financial obligation. amount declines with time.
Usually offered with home loan.

Policy servicing :Riders : aditional coverage by additional premium.

1. Waiver of premium: offered wid term life ins. company pays premium
2. Accidental death benefit: additional amount to beneficiery.
3. Accelarate ddeath benefit: to collect portion or full when terminally ill.
Surrender of a policy: terminating a policy volunatrily.
reasons like over insured, premium burden, unexpected performence,
divorce, tax law change, circumstances.
Loans & withdrawls: withdrawls are gross, max, net.
other services:
non forfeiture options: benifits to insured when policy lapses
usually amount or cash surrender
extended term ins: uses NFO to purchase term ins
reduced paid up ins: cash value reduces amount of ins. cash purchases single pre
mium
Automatic premium loan: paying from returns to prevent inadvertant lapse of poli

cy.
Health ins : against risk incurred in medical expenses.
covers cost of medical & surgical expenses
Types : private & public health ins
private- offered by commercial org. has group & individual plans
publi- are callled 'entitlement' programs, sponsored by govt
USA: TRICARE, India: RSBY, U?K: HNS
Annuities : contract to obtain returns @ regular disbursements
They are retirement savings. Priod before accumulation is accumulation period.
Types of Annuities: fixed, variable. immediate, deferred, immediate, deferred
fixed- fixed return, variable- varies with investment
immediate- lumpsum deposit is given in series(SPIA)
deferred- payouts are delayed(SPDA)