Insurance Law Flashcards
What are the elements of a contract of insurance?
- Scheme to distribute losses
- Payment of premium
- Existence of insurable interest
- Assumption of risk
- Risk of loss
What is Insurable Interest
Insurable interest is the relation between the insured and the event insured against as
such that the occurrence of the event will cause substantial loss or harm of some kind to
the insured.
What is the object of the contract of insurance?
Indemnity against loss, damages or liability.
What is the consideration of the contract of insurance?
Premium
Who is the Offeror and Offeree in the contract of insurance?
Offeror: Insured; Offeree: Insurer
When is an insurance contract perfected?
An insurance contract is a consensual contract and is therefore perfected the moment
there is a meeting of minds with respect to the object and the cause or consideration.
Is suicide treated as a circumstances which exempt the insurer in life insurance?
Yes, If the insured committed suicide within 2 years from the date of the policy’s issue
or its last reinstatement. A stipulation to exempt suicide is valid.
What are the requisites in the contract of Insurance?
- There is no contract unless the following requisites concur:
- Consent of the contracting parties;
- Object certain which is the subject matter of the contract;
- Cause of the obligation which is established.
What is the status of the insurance contract entered into between a minor and an
insurance company?
VOIDABLE
If the insured has no insurable interest over the life or property he insures, the
insurance contract is considered ___________.
UNENFORCEABLE.
What is the difference between Double Insurance and Reinsurance?
Double Insurance, it exists where the same person is insured by several insurers
separately in respect to the same subject and interest while in Reinsurance, the insurer
procures a third person to insure him against loss or liability by reason of such original
insurance.
Does the law authorize an insurance for or against the drawing of any lottery, or for or
against any chance or ticket in a lottery drawing a prize?
NO, the law does not authorize insurance for or against the drawing of any lottery.
Is the consent of the spouse necessary for the validity of an insurance policy taken out
by a married person in his or her life or that of his or her children?
NO, the consent of spouse is not necessary for the validity of the insurance policy taken
out by a married person.
What is a contract of insurance?
It is an agreement whereby one undertakes for a consideration to indemnify another
against the loss, damage, or liability arising from an unknown or contingent event.
