P&P Chapter 7 - 12 Flashcards
Reasons to Void a Contract
Misrepresentation, Mistake, Undue Influence, Duress
Reasons for an Insurer to cancel a contract
Non-payment of premium, deterioration of the property insured, increased risk, change to class an insurer does not cover
The five parts to a policy?
DISPS
DISPS Declarations Insuring Agreements Statutory Conditions Policy Conditions Signature Clause
A promise that a specified state of affairs will continue to exist
Warranty
Reinstatement Endorsement
Reinstates a previously cancelled policy upon agreement of INSD and INSR
Certificate of Insurance
Shortened form of a policy issued to certify the existence of insurance to someone other than the insured.
Gratuitous promise
Person may make a promise to another when the element of bargain is completely absent
The five (5) ways to discharge a contract. PAFOB
Performance Agreement Frustration Operation of Law Breach
2 subdivisions of insurance contracts
Policies of Indemnity
Policies of Compensation
Insurable Interest
The personal relationship between the party who contracts and the party who’s life and health is insured.
There must be a legitimate insurable interest in the continuance of the life insured.
Actual cash value contract
The value of an equivalent piece of property of the same age, condition and wear and tear
Value Contract
- Alternative method of loss calculation
- Predetermined agreed upon amount
- Insured and Insurer come to an agreement
- Professional valuations required for items over a certain limit
Replacement contract
- The cost to repair or replace
- Whichever is lesser
Included in an Insuring Agreement (SPEC)
Subject matter of insurance
Perils insured
Exclusions
Circumstances under which insured may receive the proceeds of insurance
Assignment of proceeds
Insurer does not need permission to assign proceeds
