A free, self-paced textbook in 8 chapters. Read a chapter, then drill it with the 184 companion flashcards using spaced repetition.
At its core, insurance is a mechanism for transferring financial risk from an individual or entity to a larger group. Members of this group share the losses of the few through pool...
Even when the technical conditions of insurability are satisfied, behavior can distort the picture. Moral hazard refers to the tendency of insured parties to take on greater risks...
An insurance contract differs from an ordinary commercial agreement because of the principle of utmost good faith, or uberrima fides. Both parties must disclose all material facts...
Underwriting is the process by which an insurer evaluates the risk of insuring a person or asset and decides whether to accept it, modify it, refer it, or decline it, and on what t...
Reinsurance is insurance purchased by an insurance company from another insurer to transfer part of its risk, stabilize underwriting results, and protect against large or catastrop...
The claims process typically begins with first notice of loss, the initial report from the insured that triggers the insurer's investigation. A claims adjuster assesses damages, de...
Insurance regulation in the United States is coordinated through the National Association of Insurance Commissioners, a standard-setting body governed by state regulators. The NAIC...
Insurance reaches customers through several distribution channels. An insurance agent legally represents one or more insurers and can bind coverage on their behalf, typically earni...