SPECIFY THE PROPERTY CLOSED
The insurance policy does not close every piece of goods owned by the bear. The policy usually sets the property closed.
Family car insurance policy for example to determine clearly the closed cars namely the self-owned car with the equipment, automobiles and cars, while the substitution that is not owned by the bear while in the care of the parties to the paid or being run by him upon the permission of the owner of that car. If that is borne of such parties selling, buying, or replace private cars or car passengers, he must inform the insurance company during the period of the policy changes, and premiums will be adjusted to it. These terms apply to all closures policy the family car.
DETERMINE THE LOSSES THAT CLOSED
After determining the disaster and the treasure is closed, the next step is to determine the losses that will be closed. Remember that the type of loss can be classified as follows: (1) direct loss i.e. loss or physical damage of the goods themselves, (2) loss of usage that is the reduced net income because it is not possible obtain the services of goods damaged or destroyed, and (3) such extra fees-the cost of defending the lawsuits and pay court fees, or fees and hospital treatment after an accident. Most policies only recoup-direct losses only, but there are also closing loss-the loss is not direct (2 and 3).
For example, standard fire insurance policies, only a close loss or direct damage only. It does not replace any additional costs for the reconstruction of the building.
SPECIFY THE PEOPLE WHO CLOSED
Most policies only close people listed by name in the policy or his or her representatives, while there are some close people. Standard fire insurance policies just shut the person who incurred that are listed by name in the policy that and legitimately representative i.e. the executors or heirs according to the testament of the insured and the lender in the event of bankruptcy.
Life insurance policy just close the death of Parties covered only. However, the actual protected by this policy are those who listed his name as beneficiaries (stakeholders). How should only be listed as beneficiaries in a life insurance policy.
SPECIFY THE LOCATION OF THE CLOSED
Insurance companies restrict the location of its closure. There is only a policy of closing one location only, there are also a few locations. Most policies only protect the United States and Canada alone, some others got to Europe, and there is also covering the whole world. Standard fire insurance policies 1943 New York, only bear the treasure for being in a location specified in the policy.
The policy limiting family-car unveiling at the United States and Canada. So if one wants to drive a car into Mexico, he must mengendorse his policy so that also shut down the country.
The protection provided by a life insurance policy usually covers the entire world, although sometimes this policy excludes travel in certain areas.
SPECIFY THE TIME PERIOD COVERED
Insurance policies are generally made for one year's time, but there are also the less or more than one year. Life insurance policy such as is for the time period is not limited.
A one-year insurance policy called the annual policies and is the basic rate. In insurance of property and liability insurance (liability insurance), with more than a year called term policies and often acquire pieces (discount).
The policy for a period of less than one year old is called a polis short rate or short term and usually relatively higher premiums, except car insurance.
If the parties to the paid his policy in a time of cancelling the conduct policy, he received the retrieval (refund) of the premium based on the table short-rate. These tables are usually printed in that policy.
The reason why the policy premium short-term higher are: (1) to offset the high acquisition costs and (2) to offset the selection against the insurance company.
