Why Most Conventional Insurance Is Occurrence-Based

posted on 03 Mar 2012 05:25 by insuranceoptions directory Knowledge

Why Most Conventional Insurance Is Occurrence-Based

Consumers of insurance products is expected that their policies will pay for the entire event occurs during the policy deductible - which is a period that premiums are paid. So if a fire or accident that occurs after the policy period ends, will not be covered under the policy unless the policy is renewed. This is guaranteed to occur.

Insurance that is suitable for situations in which knowledge of the insured - or immediately after it is likely that soon followed by the event itself, so that in most cases, a question the insurer will not. been filed during the policy - for example, fire or accident, but ended in some type of insurance is most often based on different. For example, loads, and sometimes can be based on the insurer. "Lost or not lost" and insurance, provided they are based. "Provided".

"Lost or not lost" means the person or entity. (The insurer and the insured) do not know if it's a safety issue - it is still in good condition when coverage begins, but still, the insurer agrees to honor a valid request, though. Incident giving rise to claims arising before the start of coverage. This type of a plug or an extension of the policy, for example, a cargo ship is at sea, and there is no simple way to ensure that the condition of it. In the past, when communication with ships at sea, such a policy has been quite common. Nowadays, are less common than the ship. It 'still used occasionally for the goods - as a condition of the cargo ship or aircraft may not be evident until the end of it.

Claims made insurance policies only cover claims made within the period specified in the policy or within a specified period after the policy period. These policies are often used for this type of questions potential coverage for months or years later, when the loss becomes known. For example, in the case of architects, professional liability cover of the building design problems. (Derived from the negligence of Architects) may not become apparent until after the event for the major or the formation of weather patterns, a maybe a few years later, in this case, the loss should be covered by the policy. force at the time of application is not a policy for the period during which the negligence occurred.

Can be found more frequently, such as home insurance and auto insurance coverage was held. "Lost or not lost" or "claims made" basis? The simple answer is no, insurers often take is lost or not lost to the family who were satisfied with the object of insurance - to be in good condition - as you can see the bill of lading.The products that are in good condition when loaded on the ship - but that is uncertain, but shared by the insurer and the insured. In the case of a house or car or other property in the land was at that time. (This insurance is arranged on the cover) can be controlled more easily.

Similarly, the insurer will not issue a policy calls for a well that is known to be lost or damaged - the architect of the professional liability risks. (Derived from the current project) can not be fully verified the immediate destruction of physical assets will be confirmed may at any time. However, as in the case of some shippers and exporters, some companies will have to ensure that it has a legal or other professional assistance is required to negotiate the terms and conditions of insurance. In particular, credits must be established when a person or entity with a common knowledge of all relevant facts and legal advice should be sought if there is no doubt that a particular situation will be. inform every potential insured.

Stephen Bourne, a lawyer in Australia. (More details) and also contributes articles and a summary of the library website Ekupu Stephen qualified in law and economics, and a member of the Australia and New Zealand Institute of Insurance and Finance.