ZIMSEC O Level Commerce Notes: Insurance: Documents used in Insurance
Documents used in insurance
- The following documents are used in insurance:
- Shows the types of risks that can be covered.
- Shows the name of the insurance company.
- Contains premium to be paid.
- States compensation to be paid.
- An application for insurance cover.
- Forms the basis for an insurance contract.
- Gives details of items to be insured.
- Answered in utmost good faith.
- Other details relevant to the items to be insured are also provided freely.
- Asks questions about the items to be insured.
- If the information given on them is false the effect is that the insurance policy/contract is rendered void.
- The information provided on it enables the insurer to:
- Assess details of the risk.
- Decide whether or not to accept the risk.
- Calculate fair premiums.
- Determine whether or not there is insurable interest.
- It is a temporary insurance certificate.
- Is issued while investigations are in progress pending issue of actual policy.
- Is used when immediate cover is required e.g. vehicle insurance.
- Is issued after payment of the first premium.
- Contains terms and conditions of the insurance contract.
- Is used to claim compensation in the event of a loss incurring.
- Is issued after a cover note.
- Is a contract of insurance.
- It gives details of the risk covered.
- States premium to be paid.
- Contains terms and conditions that are applicable to the insurance contract.
- Is completed by the insured.
- When claiming compensation.
- Asks questions about:
- The risk insured.
- The loss incurred (details of the loss, date of the loss, and police report)
- Policy number
- Policy holder.
- Cause of risk.
- The information given in it allows the insurance companies assessors to:
- Assess the exact cause of the loss.
- Calculate the amount of compensation.
- It is also completed in utmost good faith.
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