RMI 2301 Lecture Notes - Lecture 5: Liability Insurance, Property Insurance, Life Insurance
22 Jan 2019
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: life, property +liability, and health: life insurance pays death benefits to designated beneficiaries when the insured dies. Liability insurance covers the insured"s legal liability arising out of property damage or bodily injury to others; legal defense costs are also paid. In life insurance, a dividend is largely a refund of a redundant premium that can be paid if the insurer"s mortality, investment and operating experience are favorable. A life insurance agent normally doesn"t have the authority to bind the insurer. Life insurers have an agency or sales department: property and casualty insurers have marketing departments. To assist agents in the field, special agents may also be appointed: know each type of domicile means: A domestic insurer is an insurer domiciled in the state; it must be licensed in the state as well as in other states where it does business. (within the state)
