INSURANCE CONTRACT

Question 1

framework (3 things)

Answer 1

1. the agent
2. insurance of contract
3. insurance claim

Question 2

what happens if the agent makes a mistake?

Answer 2

then the insurance company is at fault

Question 3

authority of agent?

Answer 3

if they appear to have authority, whether they do or not

Question 4

formation of contract

Answer 4

1. proposal (invitation)
2. fill out (offer)
3. issues policy (acceptance)

Question 5

what is insurable interest

Answer 5

a direct financial interest in the life or property insured (only way to take out insurance on someone), must suffer a loss if so

Question 6

uberrimae fidei

Answer 6

contract of utmost faith

Question 7

what do you have to disclose and not disclose?

Answer 7

disclose:
- all material info

not disclose:
- speculation (facts)
- what they already know or ought to know

Question 8

reasonable insurer test

Answer 8

would the non disclosed info have influenced a reasonable insurer to refuse or alter

Question 9

2 parts of an insurance claim

Answer 9

1. subrogation
2. co insurance

Question 10

subrogation

Answer 10

when an insurance company pays a claim, they step into the shoes of the insured and can sue the wrongdoer

Question 11

co - insurance

Answer 11

an insured individual’s share of the costs of a covered expensive (health-care)