Chapter 23

1. Chapter 23 Insurance

2. TEKS • TEKS 8 – The student explains risk bearing devise. The student is expected to: • Identify the principles of insurance; • Review the types of insurance; • Recognize security devices such as fidelity bonds and securities • Discuss the appropriateness and categories of bankruptcy; • Research contemporary cases dealing with risk bearing devices using appropriate online technology

3. What Is Insurance? • Contractual arrangement that protects against loss • One party agrees to pay money to help offset a specified type of loss that might occur to another party

4. Key Terms • Insurer – party who agrees to indemnify • Insured – party covered or protected • Beneficiary – recipient of the amount paid • Policy – written contract of insurance • Face Value – maximum amount that could be paid if the harm a person insured against occurs • Premium – consideration for insurance

5. 7 Types of Insurance • 1. Life Insurance • 2. Fire Insurance • 3. Casualty Insurance • Burglary, Robbery, Theft, and Larceny Insurance • Automobile Insurance • Liability Insurance • Disability, Accident, or Health Insurance

6. 7 Types of Insurance • 4. Social Insurance • 5. Marine Insurance • 6. Inland Marine Insurance • 7. Fidelity and Surety Bonding Insurance

7. Fidelity and Surety Bonding Insurance Fidelity insurance provides coverage against financial loss caused by dishonesty. Such dishonest acts include embezzlement or failure of one person to perform a legal obligation to another, such as constructing a building as promised. Contracts of fidelity insurance are often known as surety bonds.

8. Insurance Cases www.lexisnexis.com