Insurance is a contract, and the insurance contract is a special type of contract.  The course covers what an employee, officer, or director of a corporation needs to know to be able to read and understand an insurance policy in order to establish that it provides the insurance protection needed. 

The course covers the following:

  1. That insurance is a contract and how to understand the basic rules of interpretation of contracts.
  2. The application for insurance and how it is used by the applicant and the insurer.
  3. The need for offer, acceptance, and consideration to form an insurance contract.
  4. How to read and understand the insurance contract.
  5. The first party property insurance contract and how it is formed and made effective.
  6. The importance of conditions and limitations in a first party property policy.
  7. The rules of insurance contract interpretation.
  8. The "contra preferentum" rule.
  9. The standard fire policy.
  10. The auto material damage policy.
Learning Objectives
  • Explore the steps necessary to interpret insurance policies.
  • Explore how insurance is interpreted by courts.
  • Explore how to deal with the elements of a contract: offer, acceptance and consideration.
  • Identify the need to complete a thorough, honest, and complete application and understand how the application is used by the insurer.
  • Identify the need to read and understand the policy after it is delivered.
  • Recognize the need to read a policy after it is delivered to ascertain it provides the coverages ordered by the applicant.
Last updated/reviewed: August 18, 2023
Course Search

Included In Certifications

This course is included in the following Certification Programs:

16 CoursesCorporate Property Insurance Certification

  1. Introduction: Excellence in Claims Handling
  2. How to Acquire a First-Party Property Insurance Policy
  3. How to Read and Understand an Insurance Policy
  4. The Necessity of an Honest and Complete Insurance Application
  5. The Basics of the Law of Contracts for the Insurance Professional
  6. Ethics for the Insurance Professional
  7. What is the Problem with Fraud?
  8. Interviewing Techniques for the Insurance Professional
  9. Investigation of a First-Party Property Insurance Claim
  10. The Creation of a Scope, Statement, and Proof of Loss
  11. The Duties of an Insured Presenting a First-Party Property Claim
  12. The Insurance Examination under Oath (EUO)
  13. Insurance Fraud Prevention
  14. Compliance with Special Investigation Unit Regulations
  15. Compliance with Good Faith Settlement Practices Regulations
  16. The Obligations of a Public Insurance Adjuster
3 Reviews (10 ratings)

Reviews

4
Member's Profile
The material provides the basics as to what you can expect when reviewing an insurance policy.
5
Member's Profile
This is a very good course. I will recommend this to others.
5
Member's Profile
Very easily understood topic and useful information!
Prerequisites
Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to How to Read & Understand an Insurance Policy3:07
  The Application3:25
  The Acceptance and Consideration3:04
  The Insurance Contract10:14
  The First Party Property Insurance Policy12:20
  The First Party Property Insurance Policy (cont'd)14:05
  The Standard Fire Policy11:49
  The Standard Fire Policy (cont'd)8:58
  The Business Owners' Policy4:05
CONTINUOUS PLAY
  How to Read & Undertand an Insurance Policy1:11:11
SUPPORTING MATERIALS
  Slides: How to Read & Understand an Insurance PolicyPDF
  How to Read & Understand an Insurance Policy GlossaryPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam