18 years and of sound mind. kycee. An insurance contract comes into existence when one party makes an offer or proposal of a contract and the other party accepts the proposal. If a contract is made with an underage the application may be held unenforceable if the minor decides to repudiate it at a later date. Take me to revised course. STUDY. fire, marine, motor, etc. Created by.

• 2.It is a contract of uberrimae fedei : The assured and the insurer have to disclose everything which is in their knowledge and which will affect the contract of insurance… 2.1. Characteristics of Life insurance Contract 1. It is not enough, however. DISTINCT CHARACTERISTICS OF INSURANCE CONTRACTS. 8 important characteristics of Insurance 1. Insurance … Chapter 10 Structure and Analysis of Insurance Contracts. Only the insurer has covenanted any further action, and only the insurer can be held liable for breach of contract.

• The premiums are so calculated that on average, in total, they are sufficient to pay compensation for policy holders who will make a claim, together with a margin to cover administration costs and profit . As opposed, the insurance, which is not covered under life insurance and includes various types of insurance, i.e. See our Privacy Policy and User Agreement for details. In other insurance contracts, the contingency is the fire or the marine perils, etc., may or may not occur. Insurable interest. Utmost good faith 4. In the case of insurance… 8. PLAY. For a more enjoyable learning experience, we recommend that you study the mobile-friendly republished version of this course. MAIN LEGAL TEXTS 3.1. Spell. Characteristics of Insurance Contracts - Part 2; Previous Topic Next Topic. Updated: 03/01/2021. An insurance contract is based on the principle of utmost good faith.Under this insurance contract both the parties should have faith over each other. The person entering into a contract should enter with his free consent. See our User Agreement and Privacy Policy. Now customize the name of a clipboard to store your clips. Insurability. INSURANCE is a practice or arrangement by which company or government agency provides a guarantee of compensation for specified loss, damage, illness or death in return for a payment of a premium. Contracts. The insurance contract, in which the life risk of an individual is covered, is known as life insurance. An insurance policy is a legal contract that is agreed upon by two or more parties. Insurance is a device to share the financial losses which might befall on an individual or his... 2. Any Insurance is a contract between insurer and insured for compensating the losses. If you continue browsing the site, you agree to the use of cookies on this website. Write. Previous Topic Previous slide Next slide Next Topic. This Course has been revised! Aleatory contract: Most contracts are commutative, I,e., each party gives up goods or services presumed to be of equal value. If you continue browsing the site, you agree to the use of cookies on this website. Warranties are the representations in life insurance which are embodied in the policy and expressly or impliedly forming part of the basis of the contract. Proximate cause 6. See our User Agreement and Privacy Policy. In Insurance contract the insurer is bound by the Flashcards. 2. Now customize the name of a clipboard to store your clips. Essentials of Insurance Contract Principles of Insurance 42 With respect to the insured, the person should be of legal age i.e. 3. Return of premium 8. For any insurances contract not only premium is charged but it also obligatory to pay the premium in time. Characteristics of Insurance: One can easily differentiate these characters of insurance as below: 1. Take me to revised course. Sharing of Risk:. Without insurable interest, the contract would be regarded as a gaming or wagering contract and would, therefore, be invalid. It helps prevention of losses 4. Insurance Derivative: A financial instrument that derives its value from an underlying insurance index or the characteristics of an event related to insurance. Insurance as a financial intermediary is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses. 4. In other words, insurance contracts are offered on a " … In some sense, it’s a thing providing protection against a possible eventuality. See our Privacy Policy and User Agreement for details. The Basics Parts of an Insurance Contract Miscellaneous Provisions: General provisions common to insurance contracts that address the relationship between the insurer and the insured, and the responsibilities of the insurer toward third parties. The insurance contract must be lawful. Clipping is a handy way to collect important slides you want to go back to later. Characteristic features of an Insurance Contract 1. In order for any contract to be enforceable, it must first be legally binding on the parties. Characteristics of Insurance Contracts - Part 2; Previous Topic Next Topic. Value of Risk:. What is an Insurance Contract? No public clipboards found for this slide. 2. The first examples of insurance related to marine activities. Gravity. … Here are some characteristics as follow 1. Both the parties to the contract, that is the insured... 3. Previous Topic Previous slide Next slide Next Topic. Conditions to subscribe a contract
  • There is an offer by one party ( offeror) accepted by an offeree
  • Enforceable contract , parties must agree on price + subject matter
  • Enforceable agreement may be manifested in express contract or implied contract … Characteristics of Fire Insurance Contract
    • 1.It is a contract of indemnity :The assured can in the event of loss recover the actual amount of loss from the insurer.This is subject to the maximum amount for which the subject matter is insured. 3. At a very basic level, it is some form of protection from any possible financial losses. Learn. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.
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