A) This form provides the following property, but only the property for which an amount of insurance is listed on the declaration page: “BUILDING,” “EQUIPMENT,” “STOCK,” “ALL PROPERTY,” “CONTENTS” The insurance in this clause 2.A. applies only during the item listed on the reporting page. An insurance contract is a document that constitutes the agreement between an insurance company and the insured. At the heart of an insurance contract is the insurance contract that defines the risks covered, the limits of the policy and the duration of the policy. In addition, all insurance contracts define: this is an important example of the importance of looking beyond simple coverage and reading the entire policy to determine if the loss could be covered. If you provide inaccurate information with the intent of deception, your insurance policy becomes invalid. Reinsurance is done when your insurer “sells” part of your insurance coverage to another insurance company. Suppose you`re a famous rock star and your vote is guaranteed for $50 million. Your offer is accepted by insurance company A. However, insurance company A is not in a position to keep all the risk, so it passes some of that risk – say $40 million – to Insurance Company B. If you lose your singing voice, you will receive $50 million from Insurer A ($10 million – $40 million), with insurer B paying the refunded amount ($40 million) to Insurer A.
This practice is called reinsurance. In general, reinsurance is much more practiced by general insurers than by life insurers. The Trisura Guarantee Insurance Company (“Trisura”) has issued Master Policy insurance to the Appraisal Institute of Canada (“AIC”). The master`s policy involved claims against AIC members, their personal businesses, employers and the AIC for negligence in providing professional assessment services. A) Representations: These are the written statements you make on your application form that represent the proposed risk to the insurance company.