The Policy Flashcards
What is the rule with regards to the transfer of the thing insured?
The mere transfer of a thing insured does not transfer the policy, but suspends it until the same person becomes the owner of both the policy and the thing insured.
What if the policy has a condition limiting the time for commencing an action for less than one year?
A condition, stipulation, or agreement in any policy of insurance, limiting the time for commencing an action thereunder to a period of less than 1 year from the time when the cause of action accrues, is void.
What is the rule on instances where a policy of insurance may be cancelled by the insurer?
No policy of insurance other than life shall be cancelled by the insurer except upon prior notice thereof to the insured, and no notice of cancellation shall be effective unless it is based on the occurence, after the effective date of the policy, of one or more of the following:
(a) Nonpayment of premium
(b) Conviction of a crime arising out of acts increasing the hazard insured against
(c) Discovery of fraud or material misrepresentaiton
(d) Discovery of willful or reckless acts or omissions increasing the hazard insured against.
(e) Physical changes in the property insured which result in the property becoming uninsurable
(f) Discovery of other insurance coverage that makes the total insurance in excess of the value of the property insured
(g) A determination by the Commission that the continuation of the policy would violate or would place the insurer in violation of this Code
How are notices of cancellation issued?
All notices of cancellation shall be in writing, mailed or delivered to the named insured at the address shown in the policy, or to his broker provided the broker is authorized in writing by the policy owner to receive the notice of cancellation on his behalf, and shall state:
(a) The ground of cancellation
(b) That upon written request of the named insured, the insurer will furnish the facts on which the cancellation is based.
