A. Insurance Product, Operations & Data

1 Understanding the Insurance Product

• Insurance is a contract between the insurer and the insured/policyholder
• A promise that in exchange for premiums that the policyholder pays, the insurer will indemnify the future losses of the insured if the policy covers for it.
• Coverage is the specific events or risks that the policy covers

Two main types

1. Life Insurance: provide financial protection to the beneficiaries upon the death of the individual
   1. Term life insurance (10 or 20 or 30 years)
   2. Whole life insurance (the cash value component grows over time as the insured ages as a result of investment of the portion of the premium in various assets)
   3. Universal life insurance (offers more flexibility than whole life insurance but comes at a higher cost and a greater risk as a tradeoff)
2. General Insurance (GI)
   1. Health
   2. Property (focus)
      1. Public
         1. Homeowners insurance
         2. Renters insurance: covers the personal belongings of tenants of a rented apartment
         3. Condo insurance
         4. Mobile home insurance
      2. Calamity
         1. Earthquake insurance
         2. Flood insurance
      3. Pvt
         1. Business insurance
         2. Commercial property insurance
   3. Auto (focus)
   4. Travel
   5. Liability