Insurance Contracts - 5 Elements Plus 3 More

Question 1

Agreement (Common Law Contract )

Answer 1

There must be an offer and acceptance, no one can walk away from the deal. murder wife story

Question 2

Consideration (Common Law Contract)

Answer 2

Payment or promise to pay or an exchange of value. In all common law provinces, there must be consideration

Question 3

Legal Capacity or Legal Entity (Common Law Contract)

Answer 3

Certain people you cannot enter a contract with, but if minor can walk away.

Someone who can sue or be sued

Question 4

Genuine Intention (Common Law Contract)

Answer 4

We both want to enter the contract

Question 5

Legality of Purpose (Common Law Contract)

Answer 5

Can’t be against public policy

Question 6

Salvage (Upholds Indemnity)

Answer 6

A principle that prevents you from profiting off a claim.

Contribution Insurance: we pay nothing until under 1 or more policy - policy has exhausted limit.

Subrogation: when the insurance company sues using your name (Brando Story)

Question 7

Insurable Interest (Upholds Indemnity)

Answer 7

You stand to benefit from its existence or financially hurt by its non-existence. *insurable interest in home: benefit because you live there if burns down you have no house.

Question 8

Indemnity (Uphold Indemnity)

Answer 8

To put you back in the same financial position, just prior to loss. NO BETTER NO WORSE

*When we indemnify you, we pay the least of the cost to repair when we indemnify you, the cost to repair your insurance, limit of policy.

Question 9

Utmost Good Faith ( Upholds Indemnity)

Answer 9

Underwriters job is to make decisions on what’s on the application. BEING TRUSTWORTHY/ BEING HONEST