What is the significance of indemnity being a contractual principle?
The significance is that the indemnity can be varied if the parties to the insurance contract wish to vary it.
rateable proportion
where there is more than one insurance policy liable for a loss and the insurers concerned only pay their share of the loss
agreed value
insurance arrangement in which the value of an item insured is agreed in advance and (usually) a formula agreed for partial losses
means of apportioning losses where the contribution applies in proportion to the independent liability under each policy
independent liability method
exclusion of cover where a loss is covered by another, more specific, insurance policy
more specific insurance clause
What is the most common way in which subrogation rights arise?
Although subrogation rights may arise from a contract entered into by the insured, they mostly arise in cases involving tort.
generic term for a variety of clauses that restrict the operation of a rateable sharing of losses
non-contribution clause
policy that contains elements of both indemnity and benefit cover
Hybrid Policy
means of apportioning losses where the contribution applies in proportion to the maximum amount of cover available under each policy
maximum liability method
While both subrogation and contribution support the principle of indemnity, what is the key distinction between the two types of rights?
. Contribution differs from subrogation in that, while subrogation passes on the insured’s rights to the insurer, contribution is an equitable method of sharin
insurance cover in which the insurer agrees to insure property for a lesser sum than its replacement cost
First Loss Cover
the right of an insurer to share the cost of an indemnity payment among similarly (but not necessarily equally) liable parties
contribution
policy that has been effected, requiring full value as the basis for cover but where a lower figure has been declared
Underinsurance
For property insurance, what four options do insurers write into their policy wordings to give themselves flexibility in providing indemnity?