What is Legislation?
Legislation makes sure that a contract is easily read and there is no use of overly complex langauage
What is the basic structure of a policy?
-Heading
-The preamble
-Signature
-Operative Clause
-Exclusions
-Conditions
-Policy Schedule
-Information and facilities
What is the Heading?
Name of Insurer and in some cases address and logo
What is the preamble (recital clause)?
States the T&Cs, Introduction
What is the operative clause?
Main bit of policy, outlines what is covered
What is the exclusions section?
Contains general exclusions that apply to the whole contract
What are the Conditions?
Some are implied by common law and others are express conditions they will be specifically stated.
What is the Policy Schedule?
Makes the policy pesonal and specific to the insured
What is the Information and Facilities section?
May include definitions, customer service standard statement and complaints procedure and claims info
What are the general market exclusions?
These apply to all sections of a policy, some general exclusions are common to all policies and are called market exclusions
What are the types of market exclusions?
-War and related perils
-Radioactive contamination and explosive nuclear assemblies
-Terrorism
-Pollution and/or contamination
-Cyber risks
-Marine policies
-Contractual Liability
-Sonic bangs
What are the general conditions in policies?
-Duties of insured
-Alteration
-Action in the event of a claim
-Fraud
-Reasonable precautions
-Contribution
-Subrogation
-Average
-Abiration
-Cancellation
What is Alteration?
Insured must notify insurer of any changes that increase risk
What is Arbiration?
States that any disputes regarding money for claims setllement will be judged by an independent arbitrator
What is Excess?
First amount of each and every claim which is not covered by the policy
What is a Deductible?
A very large excess under a commercial insurance
What is a Franchise?
A threshold used to decided whether any claims payment is made. Common in Personal Accident
