Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
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If the policyholder has had a claim and it exceeds a specified limit, the premium is increased. This increase or loading on the premium is called Malus or Loading.
Valued Policies - The insurer agrees to pay a certain amount in the event of a total loss without taking into account allowances for depreciation or appreciation.
Full Value Policies - The policyholder states that the sum assured is the true and full value of the subject matter of insurance.
First Loss Policies - These policies fix the sum assured as less than the full value as it is unlikely that the loss would be total.
Floater Policies - These policies are issued to cover fire risks on stock at different locations under one sum assured. The locations have to be clearly specified. In respect of health insurance, 'floater' indicates the common sum insured that floats over a family or group.
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