handling risk, elements, terms Flashcards
certain conditions must be met to be approved
conditional
elements of legal contract
agreement consideration competent parties legal purpose
moving risk from insured to insurer
transfer of risk
ways to handle risk
avoidance retention sharing reduction transfer
offer or application/ acceptance of issued policy
agreement
applicant - representation and premium / insurer - payments of claims
consideration
unilateral
one-sided promise
all contracts are considered __
personal
law to accept or deny the terms from insured
adhesion
not against public policy (only written for legal purpose) element of contract
legal purpose
similar to transferring risk, depends on insurance policies
sharing risk
contracts are personal because
its only between insurer and insured
minimizing physical hazards
reduction of risk
conditional
certain conditions must be met to be approved
unequal exchange of value
aleatory
law of adhesion
accept or deny the terms from insured
self insuring, do not have insurance to transfer risk
retention of risk
insurer cant force a policy insured does not want; one-sided promise
unilateral
legal age, mentally competent, not under the influence of narcotics (element of contract)
competent parties
aleatory
unequal exchange of values
elements of insurable risk
due to chance, definite and measurable, statistically predictable, not catastrophic (puts insurance at risk for large claim), randomly selected/large loss exposure (not premeditated)
