Characteristics of Insurance Contracts

Question 1

What are the characteristics of insurance contracts that make them different from other contracts?

Answer 1

-> Subrogation
-> Utmost Good faith
-> Utmost Good faith in Claims handling
-> Indemnity
-> Insurable interest

S(UI)^2

Question 2

Explain the point on Sobgrogation

Answer 2

It is a principle behind insurance contracts that allows the insurer to step into the shoes of the insured and pursue legal action against a third party responsible for damages.

Question 3

Explain the point on Utmost good faith

Answer 3

This is a principle that requires the insured and the insurer to provide all material information that has to do with the risk to be covered

Question 4

Explain the point on Utmost good faith in claims handling.

Answer 4

This is a principle that requires the insured to provide factual and timely information when making claims

Question 5

Explain the point on Indemnity

Answer 5

This principle requires the insured to be paid the full amount of what is needed to cover the loss he/she has suffered

Question 6

Explain the point on Insurerable interest

Answer 6

This is a principle that requires the insured to have a legal or financial interest in the property to be insured