Insurance Contracts Compilation Flashcards
Indemnification extends up to what
-up to policy limits and
-subject to policy provisions and limitations like deductibles
Most property, liability and health ins contracts are what
contracts of indemnity
Indemnity payment limit?
only to the extent of financial loss or legal liability
Applicable laws affecting insurance
-laws of agency
-torts
-contracts
To be legally binding an ins contract has to have what
- Offer and acceptance
- Consideration
- Legal Purpos
- Capacity of Prominent Parties
“Offer and Acceptance” offer must be what
offer must be unqualified and accepted in exact terms
Offer and acceptance says what re: written form
contract/policy does not have to be reduced to a written form to be binding and is governed by state law
Consideration: Insurance contract requires exchange of value to be what
legally binding
Payment of premium is also known as what
the consideration
Submission of completed insurance application is known as what
the offer
Legal Purpose
subject of ins must be a legal biz or for a legal purpose to be enforceable.
What happens if the object of an insurance contract is illegal?
The contract is void
Capacity of competent parties
Individuals, groups or biz in an ins contract must be legally capable per the law - not a minor or mentally incompetent
When does life insurance need insurable interest?
at the inception but not required at time of death
How does indemnity apply to life insurance?
the recovery amount is the face of the policy, not the value of the life insured
