Page 11 - Life Assurance
P. 11
3- there must be some risks, some chance
of loss and some uncertainty as to loss from
designated perils.

4- the assumption of loss must be a part of a
general scheme to distribute losses among a
large group of persons bearing similar risks.

5- the insurer must assume the risk of loss.
Payment to the insured may be in money or in
services.

Not all American states insurance laws define
insurance, and those that do may have definitions,
which do not conform to all of the above
requirements. For this reason, no single statutory
definition is totally satisfactory. For example, New
York's statutory definition requires that benefits of
monetary value should be given to the insured as a
result of a fortuitous even (requirement 3 above),
but the laws of Massachusetts do not require a
fortuitous event. The laws of Kentucky specify that
the event be a "contingency" and the laws of
California specify that it be a "contingent or
unknown" event.

75 Life41/life/life 08
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