Chapter two- the insurance contract Flashcards
1
Q
What are the four things that make a contract valid?
A
- competent parties
- legal purpose
- offer and acceptance
- consideration
2
Q
What does indemnity mean in the insurance contract?
A
make whole again
3
Q
what does aleatory mean?
A
one partys performance depends on an cerain event, which means that the exchange of value might appear to be unequal
4
Q
Insurance contracts are contracts of adhesion? what does that mean?
A
the insurer has greater power over the party in drafting the contract
5
Q
what are the five parts of an insurance contract?
A
DICED
- declarations
- insuring agreements (heart of the policy)
- conditions (ground ules)
- exclusions
- definitions
6
Q
A
