38.1 Law for Business, 15e by Ashcroft Chapter 38: Types of Insurance Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning

38.2 Chapter 38 Objectives  Explain the nature of life insurance and its normal limitation.  Define property insurance.  Identify the types of coverage afforded by automobile insurance.

38.3 Types of Life Insurance Term life  Renewable, level term  Decreasing term Endowment  Decreasing term plus a savings account Whole life  Continues until death or age 100. Combinations of any of the above

38.4 Limitations on Life Insurance  Two limitations upon risk covered by life insurance are suicide and war activity  The usual grace period for paying life insurance premiums is 30 days  A policyholder can elect to change beneficiaries at any time

38.5 Property Insurance Terminology 4. Blanket 5. Floating 6. Homeowner’s 1. Open 2. Valued 3. Specific

38.6 Auto Insurance Provisions  Theft - conversion or robbery.  Fire - not only covers the car itself, but any conveyance upon which the car is being transported.

38.7 Auto Insurance Provisions  Collision - covers damage when a car strikes an object or object strikes a car.  Comprehensive - covers windstorm, earthquake, flood, strikes, malicious mischief, submersion in water, riot, hail, falling aircraft.

38.8 Public Liability Insurance Bodily injury insurance Property damage insurance Uninsured motorists insurance Medical payments

38.9 That’s all! Make sure you understand this chapter before proceeding to the next one.