The insurance contract must be lawful. Contract of ‘Uberrimae fidei’ or Contract of Utmost good faith. - or - Continue studying this course. PARTIES TO INSURANCE CONTRACT INSURER INSURED. Take me to revised course. The insurance contract, in which the life risk of an individual is covered, is known as life insurance. The following can be inferred from the above two definitions: (1) Each party is required to tell the other, the truth, the whole truth and nothing but the truth. Rider And Endorsement: Clause or term added to your insurance policy to provide protection, … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Clipping is a handy way to collect important slides you want to go back to later. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Insurance … Warranties 5. Insurance Derivative: A financial instrument that derives its value from an underlying insurance index or the characteristics of an event related to insurance. An insurance policy is a legal contract that is agreed upon by two or more parties. Characteristics of Fire Insurance Contract

• 1.It is a contract of indemnity :The assured can in the event of loss recover the actual amount of loss from the insurer.This is subject to the maximum amount for which the subject matter is insured. It means that they should disclose all material facts or information fully and truly at the time of entering into a contract. Return of premium 8. At a very basic level, it is some form of protection from any possible financial losses. Both the parties to the contract, that is the insured... 3. Take me to revised course. If you continue browsing the site, you agree to the use of cookies on this website. In order for any contract to be enforceable, it must first be legally binding on the parties. Life insurance is nothing but an investment avenue. Characteristics of an Insurance Contract A contract of insurance has the following characteristics: Consensual – perfected by the meeting of the minds of the parties; Voluntary – it is not compulsory and the parties may incorporate such terms and conditions as they may deem convenient which will be binding provided they are not against the law or public policy Characteristics of Insurance Contracts - Part 2; Previous Topic Next Topic. Flashcards. On the contrary, general insurance is a contract of indemnity. Sharing of Risk:. Here are some characteristics as follow 1. Write. Insurance is defined as a contract, which is called a policy, in which an individual or organisation receives financial protection and reimbursement of damages from the insurer or the insurance company. 1. No public clipboards found for this slide. 3. ADVERTISEMENTS: 3.

• 2.It is a contract of uberrimae fedei : The assured and the insurer have to disclose everything which is in their knowledge and which will affect the contract of insurance… Conditions to subscribe a contract
  • There is an offer by one party ( offeror) accepted by an offeree
  • Enforceable contract , parties must agree on price + subject matter
  • Enforceable agreement may be manifested in express contract or implied contract … Learn. BANKING & INSURANCE: INSURANCE
    • Insurance is a contract to pay compensation in certain eventualities (e.g., death, fire, theft, motor accident) in return for a premium . So, if the contingency occurs, payment is made, otherwise, no amount is given to the policy-holder. See our User Agreement and Privacy Policy.
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