Day: March 12, 2024

The Fundamentals of InsuranceThe Fundamentals of Insurance

Whether it’s property, auto or health insurance, individuals and businesses need protection from financial losses. This workshop teaches participants about the fundamentals of insurance, including coverage options, policies and claims procedures.

Insurance license Ontario is a form of risk management in which one party, the insurer, guarantees payment for an uncertain future event in exchange for a premium from another party, the insured. The principles of insurance are designed to provide fairness and security for both parties. They include the principles of utmost good faith, insurable interest, indemnity, proximate cause and subrogation.

“Fundamentals of Insurance: Key Concepts and Principles

The principle of utmost good faith requires both the insurer and the insured to disclose all facts that might affect the decision to insure or the terms of the insurance contract. This prevents fraud and gives the insured peace of mind that the company will do its best to fulfill the promises made in the policy.

Insurable interest means that the insured must have a legitimate ownership interest in the property or item being insured. This is a common sense requirement and it helps the insurer avoid situations where the insured may try to take advantage of the insurance company.

A deductible is a small amount that the insured must pay before the insurance company begins to cover a loss. This is an attempt to limit the number of small, low-value claims that can add up to a large expense for the insurer. It also encourages the insured to be careful in reducing their risk by taking steps to protect against accidents and losses.