CH 1

  1. Contract
    • Agreement
    • Consideration
    • Competent parties
    • Legal purpose
  2. Agreement
    • Valid offer
    • Unconditional acceptance
  3. Insurance Contract
    • Offer: applicant provides applications and premium
    • Acceptance: insurer issuing or producer delivers the policy
  4. A offer is not completed unless the premium is included
  5. There must be an exchange of values between the parties to make the agreement binding (consideration of value)
  6. The consideration is the binding force of a insurance policy. (premium paid from applicant, promise to pa claims from insurer)
  7. Unilateral
    • developed by one party
    • ex. insurance contact (developed by the insurer)
    • An offer for a unilateral contract generally requires the performance of an act in order for the contract to be binding (insurance contract is binding by insurer issuing the policy)
    • A contact where only one party must perform
    • Act in exchange for a promise or a Promise in exchange for an act already performed
  8. Adhesion
Card Set
CH 1