Perils

Overzicht

Ask a shopkeeper what her fire policy covers and she will say fire. Ask her whether it pays when the fire brigade floods her stock with water to put out a blaze next door, and she will hesitate. The answer turns on a single word that runs through every claim ever settled: the peril, the actual cause of the loss, and whether the policy names it as covered, says nothing about it, or shuts it out.

In this lesson you will learn exactly what a peril is and how it differs from a risk and a hazard, meet the three families of peril that decide every claim (insured, uninsured and excepted), and master the doctrine of proximate cause, the rule that examiners use to ask whether a given loss is payable. Get the peril right and you can predict the insurer's answer before the claims officer opens the file.

Doelstellingen

  1. Define a peril and give examples of insured and excepted perils
  2. Distinguish clearly among a peril, a risk and a hazard
  3. Explain how the peril insured against determines whether a claim is payable
  4. Classify given events correctly as perils, risks or hazards

Lesnotitie

A draper in Lagos insures her shop against fire. One night a fire starts in the lock-up next door, and the fire service pours water through her doorway to stop the flames spreading. Her stock is never touched by fire at all, yet it is ruined by water. She reads her policy, sees the word fire and not the word water, and assumes she cannot claim. She is wrong, and the reason she is wrong is the whole of this topic. What a policy pays for is not decided by the immediate cause of the damage but by the peril that set the chain of events in motion, and whether that peril is one the policy insured. Learn to read the peril and you can read the claim.

Lesevaluatie

Gefeliciteerd met het voltooien van de les op Perils. Nu je de sleutelconcepten en ideeën, het is tijd om uw kennis op de proef te stellen. Deze sectie biedt een verscheidenheid aan oefeningen vragen die bedoeld zijn om uw begrip te vergroten en u te helpen uw begrip van de stof te peilen.

Je zult een mix van vraagtypen tegenkomen, waaronder meerkeuzevragen, korte antwoordvragen en essayvragen. Elke vraag is zorgvuldig samengesteld om verschillende aspecten van je kennis en kritisch denkvermogen te beoordelen.

Gebruik dit evaluatiegedeelte als een kans om je begrip van het onderwerp te versterken en om gebieden te identificeren waar je mogelijk extra studie nodig hebt. Laat je niet ontmoedigen door eventuele uitdagingen die je tegenkomt; beschouw ze in plaats daarvan als kansen voor groei en verbetering.

  1. A peril is best described as: A. The uncertainty that a loss will occur B. A condition that makes a loss more likely C. The actual cause of a loss D. The amount payable when a loss occurs Answer: C
  2. Which of the following is an excepted peril under a standard fire policy? A. Lightning B. Explosion C. War D. Fire Answer: C
  3. A fire breaks out and the fire service uses water to put it out, ruining the insured stock. Under a fire policy, the proximate cause of the loss is: A. Water B. Fire C. The fire service D. Negligence Answer: B
  4. Which of the following is a peril rather than a hazard? A. Worn brake pads B. Storing petrol indoors C. Theft D. A watchman who sleeps on duty Answer: C
  5. A fire policy expressly excludes riot. During a riot, a mob sets the insured shop on fire and it is destroyed. The insurer will: A. Pay in full, because fire is insured B. Pay half the loss C. Pay nothing, because the proximate cause is riot D. Pay only the value of the building Answer: C

Aanbevolen Boeken

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Ondertitel: Thirteenth edition
Uitgever: Pearson
Jaar: 2016
ISBN: 978-0-13-408257-8
Beschrijving: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Ondertitel: Tenth edition
Uitgever: Wiley
Jaar: 2008
ISBN: 978-0-470-08753-4
Beschrijving: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Ondertitel: Second edition
Uitgever: Himalaya Publishing House
Jaar: 2017
ISBN: 978-93-5097-079-9
Beschrijving: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Eerdere Vragen

Benieuwd hoe eerdere vragen over dit onderwerp eruitzien? Hier zijn een aantal vragen over Perils van voorgaande jaren.

WAEC SSCE - Insurance - 2015

Vraag 1 Verslag

Explain the following terms under marine insurance:

(a)       hull policy

(b)       cargo policy

(c)       freight policy

(d)       marine perils

(e)       average

 

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