Frequent question: What best describes a conditional insurance contract?

Which of the following BEST describes a conditional insurance contract? A contract that requires certain conditions or acts by the insured individual This means that the insurer’s promise to pay benefits depends on the occurrence of an event covered by the contract.

What type of contract is an insurance policy?

Most insurance policies are unilateral contracts in that only the insurer makes a legally enforceable promise to pay covered claims. By contrast, the insured makes few, if any, enforceable promises to the insurer.

Who is responsible for assembling the policy forms for insureds?

An insurance carrier is the company that is allowed to sell insurance policies and holds it.

What’s an example of the insured’s consideration?

For example, a person who pays auto insurance premiums to an auto insurance company would receive consideration if they experienced a covered loss to their vehicle. Under this consideration, the auto insurer would pay for the losses.

What are the 3 types of contracts?

The three most common contract types include:

  • Fixed-price contracts.
  • Cost-plus contracts.
  • Time and materials contracts.

What are the principles of insurance contract?

Principles of Insurance

  • Utmost Good Faith.
  • Proximate Cause.
  • Insurable Interest.
  • Indemnity.
  • Subrogation.
  • Contribution.
  • Loss Minimization.
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What are the characteristics of insurance contract?

The following are some of the important features of an insurance contract.

  • Insurable interest. …
  • Contract of ‘Uberrimae fidei’ or Contract of Utmost good faith. …
  • Indemni0. …
  • Mitigation of Loss. …
  • Causa proxima. …
  • Subrogation. …
  • Contribution. …
  • Re-insurance.

What are the elements of insurance contract?

Elements of Insurance Contract

  • Insurable Interest.
  • Utmost Good Faith.
  • Indemnity.
  • Subrogation.
  • Warranties.
  • Proximate Cause.
  • Assignment and Nomination.
  • Return of Premium.

Which type of rider will waive the premium?

A waiver of premium rider is an optional insurance policy clause that waives insurance premium payments if the policyholder becomes critically ill or disabled. To purchase a waiver of premium rider you may need to meet certain requirements for age and health.

What must a valid contract contain?

The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. In some states, element of consideration can be satisfied by a valid substitute.

What is the primary feature of a viatical settlement?

(The primary feature of a viatical settlement is the prepayment of a reduced death benefit.)

With confidence in life