Page 66 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 4: Contract of Insurance

time, companies responsible for the completion of the project will use contractors or vendors to Notes
perform certain aspects of the work.
Because most states require that many businesses maintain some sort of workers compensation
insurance for employees, general contractors or project management companies may require
certificates of workers compensation insurance from subcontractors and vendors working on
the project. They will require this in order to protect themselves from liability in the event a
subcontractor or vendor employee is injured while on the job.

Task Prepare a pro-forma of certificate of insurance.

Endorsements

It is the practice of insurers to issue policies is a standard form, covering certain perils and
excluding certain others. If it is intended, at the time of issuing the policy to modify the terms
and conditions of the policy, it is done by setting out the alteration in a memorandum which is
attached to the policy and forms part of it. The memorandum is called an endorsement.

Self Assessment

Fill in the blanks:
13. Proposal forms are used for ……………………….. insurance.
14. The policy is a document which provides ……………………………. of the contact of
insurance.

4.5 Partial Insurance

Let’s find out what exactly is meant by partial insurance. Partial insurance can refer to any type
of insurance that omits certain risks or only covers costs in specific circumstances. In more
common use, partial insurance refers to incomplete health insurance coverage. Partial insurance
in the field of health leaves patients unable to file claims for certain types of care despite having
coverage in other areas. Health care analysts and professionals discuss partial insurance along
with the uninsured when advocating health insurance policy changes.
Patients may have partial insurance for one of two reasons. The first reason is cost, as when a
given patient can only afford partial insurance, or was uninsured and qualifies for subsidized or
free insurance that only offers partial coverage. The other reason for partial insurance is because
a patient chooses to fracture risk with more than one insurance policy. Each policy offers partial
coverage, but together they provide more comprehensive coverage.

Example: In a country with a national health plan, a resident may choose to purchase
private partial health insurance to add coverage in one or more areas where public health
insurance is lacking.
Partial insurance has a number of effects throughout the health care field. For patients, it makes
certain types of care, or venues for care, more affordable than others.

Example: Patients who don’t have standard health insurance policies can still seek care
in emergency rooms, where government and health care provider subsidies may cover the cost

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