Parties to the Contract Flashcards
What is an insurer?
An insurer is the party who assumes or accepts the risk of loss and undertakes for a consideration to indemnify the insured or to pay him a certain sum on the happening of a specified contingency or event.
What is an insured?
The person in whose favor the contract is operative and who is indemnified against, or is to receive a certain sum upon the happening of a specified contingency or event.
Who may be insured? What are his required capacity?
Anyone, except a public enemy may be insured.
The insured may be a natural person, who is competent to make a contract, must possess an insurable interest in the subject of the insurance, and must not be a public enemy.
The insured may also be a juridical person.