What is the other insurance?
Other insurance refers to situations where more than one insurer covers the same asset or assets. Most types of insurance, except life insurance have “other insurance clauses.” It is common for other insurance clause to state that where there is other insurance, the insurers will each pay out a portion of the claim.
What is an insurance clause?
An insurance clause is a contractual provision that establishes what insurance one or more parties must procure in connection with an agreement.
What is more specific insurance clause?
Other Insurance Clause — a provision found in both property and liability insurance policies establishing how loss is to be apportioned among insurers when more than one policy covers the same loss.
Why do insurance policies contain certain clauses?
Insuring clauses are used to prevent a profit from a loss that is insured, which is required by the indemnity principle. In simpler terms, these provisions describe the liability of an insurer and outline how much coverage they are required to provide.
What are the 3 main types of insurance?
Insurance in India can be broadly divided into three categories:
- Life insurance. As the name suggests, life insurance is insurance on your life. …
- Health insurance. Health insurance is bought to cover medical costs for expensive treatments. …
- Car insurance. …
- Education Insurance. …
- Home insurance.
What are the 4 types of insurance?
Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.
What does an insuring clause include?
The insuring clause states the very purpose of the life policy; it outlines the conditions under which the policy will pay. … It contains the face value of the policy, the insured’s name, and the name of the insurer.
Which of the following actions will an insurance company most likely not?
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy? The correct answer is “Issue the policy with an altered Time of Payment of Claims provision”.
What is an exclusion insurance?
An exclusion is a provision within an insurance policy that eliminates coverage for certain acts, property, types of damage or locations. … In the past, individual health insurance policies frequently contained exclusions for pre-existing medical conditions.
What is the purpose of other insurance provisions?
Other-insurance provisions are typically present in many insurance contracts. These provisions apply when more than one policy covers the same loss. The purpose of these provisions is to prevent profiting from insurance and violation of the principle of indemnity.
What is loss payable clause in insurance?
A loss payable clause is an insurance contract endorsement where an insurer pays a third party for a loss instead of the named insured or beneficiary. The loss payable provision limits the rights of the loss payee to be no higher than the rights guaranteed to the insured.
Is double insurance prohibited?
Although the law does not forbid double or multiple insurance, the law protects against fraudulent acts that may arise because of it. … The law also allows insurance companies to explicitly include an “Other Insurance Clause” in the insurance contract to prohibit taking of another insurance policy.
What is the benefit of payment clause?
facility of payment clause. A provision found in group life and industrial insurance policies that allows the insurer to pay benefits to persons or parties other than the insured or a beneficiary, under certain specified conditions.