2 Insurance Contract Law

Part of the four Essential Elements of a legally Binding Contract.
1. _______ is not against the public interest.

Part of the four Essential Elements of a legally Binding Contract.
2. _______ is required that both an offer and an acceptance.

Made when the applicant signs the application making a request to the insurance company for insurance coverage.
First part of the agreement of a contact.

Made when insurance policy is insured.
Second part of the agreement of contract

Part of the four Essential Elements of a legally Binding Contract.
3. Parties entering a contract must at the time of agreement be considered legally _____

Not competent parties are?

Competent parties include?

Part of the four Essential Elements of a legally Binding Contract.
4. Both parties must give _____. It can be a act, a promise, or money.

Insurer’s consideration is?

Insured’s consideration is?

Insurance Policy is a?

An insurance policy is a

Legal Concept that affect the validity of contracts. ________ are statements made on the application regarding Material facts that the insured believes to be true.

_____ is information that impacts the insurer’s decision to accept

____ is false information given to an insurance company regarding a material fact. The false information could be a lie or a fact overlooked.

_____is intentional failure to disclose a material fact to an insurance company.

_____ is written statements regarding material facts the insured guarantees to be true.

Breach of warranty __________ voids the insurance contract. Warranties carry greater weight than representations.

_________ is an intentional act to deceive in order to obtain anything of value. This act is a felony and is punishable by fines and/or imprisonment.

Fraud is an intentional act. An intent to gain advantage. Statements that are relied upon by another party.

Unique feature of a insurance contract.
Contract of ___________: The intent of insurance is to make the insured financially “whole” again by paying losses but not allowing gain.

Feature of a insurance contract that permits the insured to be reimbursed?

Unique feature of a insurance contract.
Contract of ___________: The insurance policy, legally binding contract, is drafted by only one party which is the insurance company.

The contract which the insured must adhere to the contract terms without negotiation. The insured must accept or reject in full. The insured cannot alter a policy provision.

Unique feature of a insurance contract.
______ contract Equal value is not given by both parties. One party can benefit more than the other based on chance. Premium vs actual loss.

Unique feature of a insurance contract.
_______ contract. Enforceable by only one party. The insurer has the duty to perform. The contract is enforceable by the insured.

Unique feature of a insurance contract.
___________ Contract: Certain rules (conditions) are required of both parties that must be fulfilled to make the contract legally enforceable.

Unique feature of a insurance contract.
Contact of ______ ______ ________ : Each party is entitled to rely upon the representations of the other. The insured tells the truth regarding material facts expecting the insurer to fulfill promise to pay any covered loss.