Legal Aspects of Insurance Flashcards
1
Q
What must a valid contract include?
A
Offer and acceptance
Consideration
Capacity
2
Q
What are exceptions to the rule that insurance contracts are contracts of indemnity?
A
Life insurance
Replacement-cost insurance, and
Valued insurance
3
Q
statements regarding insurable interest for life insurance, property insurance, and property & casualty (P & C)
A
In life insurance, the policy owner must have an insurable in the life of the insured at the time the policy is purchased but not at the time of loss.
In property insurance, there must be an insurable interest at the time of the loss but not at the time the insurance is purchased.
an owner of a property & casualty (P & C) policy must have insurable interest at the time of purchase AND at the time of loss
