06-Insurance as a risk management technique principles

《06-Insurance as a risk management technique principles》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。

1、InsuranceasaRiskInsuranceasaRiskManagementManagementTechnique:Technique:PrinciplesPrinciplesChapter6ChapterObjectives�Defineinsuranceandexplainhowitdiffersfromothermethodsofrisktransfer�Identifysituationsthatgiverisetoinsurableinterestandexplainhowthisprinciplesupportstheprinc

2、ipleofindemnity�Statehowthesubrogationprocessworksandhowitisuseful�Determinewhatmakesariskinsurable�Listthelegalrequirementsofacontractanddescribethedistinguishinglegalcharacteristicsofinsurancecontracts2ShanghaiInstituteofForeignTradeTheNatureofInsurance�Insuranceinvolvesnoto

3、nlyrisktransferbutalsopoolingandriskreduction�Pooling:Thesharingoftotallossesamongagroup�Riskreduction:Adecreaseinthetotalamountofuncertaintypresentinaparticularsituation�Insurersaccomplishthisbycombiningagroupofobjectssituatedsothattheaggregatelossesbecomepredictablewithinnar

4、rowlimits3ShanghaiInstituteofForeignTradeTheNatureofInsurance�Overallriskforthegroupisreduced,andlossesthatresultarepooled�Usuallythroughthepaymentofaninsurancepremium�Insuredstransfervariousriskstothegroupandexchangeapotentiallylargeuncertainlossforarelativelysmallercertainpa

5、yment(thepremium)4ShanghaiInstituteofForeignTradeTheNatureofInsurance�Gamblingandinsuranceareexactopposites�Gamblingcreatesanewriskwherenoneexistedbefore�Insuranceisamethodofeliminatingorgreatlyreducinganalreadyexistingrisk�Insuranceisusuallyimplementedthroughlegalcontracts,or

6、policies�Insurerpromisestoreimbursetheinsuredforlossessufferedduringthetermoftheagreement�Implicitistheassumptionthattheinsurerwillbeabletopaywhateverlossesmayoccur�Importanttoconsiderthefinancialconditionoftheinsurer5ShanghaiInstituteofForeignTradePrincipleofIndemnity�Oneofth

7、emostimportantpreceptsformanytypesofinsurance�Particularlypropertyinsurance�Theinsuredmaynotcollectmorethantheactuallossintheeventofdamagecausedbyaninsuredperil�Servestocontrolmoralhazardsthatmightotherwiseexist�Indemnify�Torestoreinsuredstothesituationsthatexistedpriortoaloss

8、�Likelihoodofintentionallossisgreatlyreduced6ShanghaiInstitut