1.0 Introduction to Insurance

Learning Objectives

Upon completion of this chapter, you will be able to:

1. Define common insurance terminology
2. Explain fundamental insurance concepts
3. Identify the characteristics and functions of insurers
4. Understand the role and responsibilities of insurance producers
5. Recognize key federal regulations that apply to the insurance industry

Overview

Although most people in the United States carry some form of insurance coverage, many do not fully understand what insurance is or how it functions. This course is designed to explain the characteristics of two major lines of insurance: property insurance and casualty insurance. Before examining these specific lines of coverage and how they apply within your state, it is important to first understand the fundamental concepts of insurance. These concepts provide a foundation for understanding the insurance industry and the important role of insurance producers.