Principles of Risk Management and Insurance, 13th Edition

Chapter 10 Analysis of Insurance Contracts

“Let’s kill all the lawyers.”

William Shakespeare

Learning Objectives

After studying this chapter, you should be able to

• Identify the basic parts of any insurance contract.

• Explain the meaning of “insured” in an insurance contract.

• Describe the common types of deductibles that appear in insurance contracts, including

  • – Straight deductible

  • – Calendar-year deductible

• Explain how coinsurance works in a property insurance contract.

• Show how coinsurance works in a health insurance contract.

• Explain how losses are paid when more than one insurance contract covers the same loss.

T aylor, age 32, is a registered nurse in Omaha, Nebraska. She recently purchased a home and had it insured under a homeowners ...