|
The situation where an item is
insured
for far less than the cost to repair or replace the item. If you do
claim agsint an under-insured item, it is very likely the insurance
company will apply the 'law of averages'; e.g if the item was worth £100
but was insured for only £10, the insurance company would only pay a
tenth of the original claim.
|
|
An underwriter is the person/company responsible for calculating the
appropriate
premium
for a particular risk. Typically, they have a good grounding in maths &
statistics.
|
|
The principle that requires the person seeking an insurance policy to
provide all details relevant to the
policy.
A person with a terminal illness seeking life insurance that fails to
disclose their condition would be an example of not acting in good faith.
|
