BU353 Chapter Notes - Chapter 18: Medical Malpractice, Property Insurance
Document Summary
First-party coverage of buildings, contents, and associated loss of use or income: fire and allied, marine, crime. Covers awards, settlements, and defense costs for injuries to third parties. Covers both property and liability risks in a single policy. Covers specified acts of employee dishonesty: financial guarantees. Exposure diagrams are a useful method of describing the coverage provided by a particular policy. They do so by displaying how the contract apportions losses between the insured and the insurer. With a per occurrence deductible, the firm pays up to the deductible amount on each loss that is covered. For example, if sharon has a policy with m per occurrence deductible and it experiences five losses during the policy period with each loss equal to . 5m, then sharon would pay all losses. With an aggregate deductible, the firm pays all losses during the policy period until the aggregate amount paid equals the aggregate deductible.
