Chapter 7 Insurance as a Risk Management Technique 风险管理与保险英文版课件.ppt

* Table 7-1: Illustrations of the Operation of the Coinsurance Clause * Coinsurance Dangers of coinsurance Increasing value of exposed property without corresponding adjustments in the amount of insurance coverage Several factors might unintentionally cause an insured to become a coinsurer Inflation may increase the replacement cost of the insured’s property Unexpected or temporary increases in inventory Increases in supplier prices for replacement goods Increased investment within the plant or store that modifies or improves the building or its equipment One possible solution Maintain an appraisal program under which periodic reviews are undertaken by qualified appraisers Coinsurance credits In return for accepting a coinsurance clause in the contract The insured is offered certain credits in its premium rates For instance, a typical reduction in the building and/or content premium is 5% When one moves from an 80% coinsurance clause to a 90% requirement By accepting the coinsurance clause, obtaining the lower rate, and buying the minimal amounts of coverage required The insured can obtain greater insurance coverage for the same total premium * Time Limitations Time is of the essence in many insurance policies Some states require that property policies become effective at noon In absence of that requirement, policies usually start at midnight The policy term provisions states that standard time at the location of the property governs the time There are also time limits that affect the dollar amount of coverage There are often waiting periods before recovery begins There may also be time limitations that restrict the maximum period for which payments may be made For instance with a disability policy It is common to provide that no income shall be payable during the first 30 to 90 days of disability * Other Insurance Clauses May limit the insurer’s liability in case additional insurance contracts also cover the loss The purpose is to estab