Section 1: Lesson 6 "Insurance and the Policy" Flashcards
Which fundamental element of contract was represented by the $150 monthly premium?
consideration
Which fundamental element of contract was missing due to the fact that Joe was 16 yrs old?
Legal capacity
Joes attorney convinces him that there is nothing to worry about, and that XYZ will eventually have the reinstate the policy and pay for this car repairs. On what would Joes attorney bas his comments?
The company cannot use Joe’s age to void the contract as it knowingly accepted Joe’s application and issued the policy. Only Joe has the right.
The long -standing principle that the purpose of insurance is to restore individuals to the financial position they held before a loss and not profit form loss is known as:
The principle of idemnity
John arranged Toby a kilo of weed from Marco Polo, a suspected drug dealer , for $10,000.When John failed to produce the money, Marco Polo tried to se John in court for breach of contract, but the case was dismissed because the agreement was missing a critical element. What element was missing?
Legal Purpose
I thought I already had my policy. What’s the different between this binder you gave me and the policy I just received? Your response to Jacob would be:
The binder was just temporary insurance until the actual and official policy could be issued by the company. This new policy is what controls your coverage.
Jacob then asks, What is the importance of the Dec page of this new document I just received? Your response wold be:
The Dec page is a summary of who and what the policy covers, where they are located, and for how much.
Where do I find a statement of what the company agrees todo for my money and what coverages are provided? Your response would be:
Thats found in the Exclusions
Example of difference between Liability coverage and Physical Damage coverage in this policy?
Physical Damage coverage protects you from damage or loss to your own car. Liability coverage provides financial protection from your liability to other people.
Where can I find the part of my policy that tells me what is not covered; you know like rust and deterioration, or if I intentionally run somebody down?
Thats found in the Exclusions
What is the section, Duties after an Accident of Loss, all about? What does it mean? Your response would be:
That section is in every policy, although it is known in most policies as the conditions section. Every policyholder has certain duties and responsibilities he or she must meet if a covered loss occurs. This section describes what You must do if you get in an accident or your car is damages.
What are Exclusions?
Exclusions describes what is not covered by the policy
If paid 6 months premium up front, can they cancel a policy If gotten into an accident or filed a claim?
as long as you’ve paid your premium, the insurance company can only cancel you for a few specific reasons, such as lying and misrepresenting certain critical face on your application, or if you lose your drivers license.
Whats the difference between primary and excess policy?
A primary policy pays first. An excess policy pays only after all other collectible(primary) insurance pays.
Assume I get into a accident and the other party sustains damage to his car and claims injury. If the damage is minimal, shouldn’t;t I just try to handle it myself? After all, If I report the accident, they might raise my rate or not renew my policy next time.
No. Failure to report the accident could jeopardize coverage if failure to do so jeopardizes the company’s opportunity to defend you or itself.
