Insurance policies are legal contracts - personal contracts between the insured and the insurer
Insurance policies are legal contracts - personnel contracts between the policyowner and the insurer
Insurance policies are legal contracts - personal contracts between the policyowner and the insurer
Protects against the wrongful invasion of another person's rights giving rise to legal liabilities (lawsuits) that are settled in civil court.
Concerns itself with private (civil) wrongs that are independent of contract law and committed against individuals.
Concerns itself with public wrongs that are independent of contract law and committed against individuals.
Most torts are covered by liability insurance
Agreement, offer, and acceptance
Insurer must adhere (is stuck) with insureds terms
Take or leave it, no negotiation, ambiguous or vague the courts will rule in favor of insured or beneficiary.
Insured must adhere (is stuck) with insurers terms.
Certain conditions must me bet by the policyholder or beneficiary in order to make the contract enforceable.
Certain conditions must me bet by the insured or beneficiary in order to make the contract enforceable.
Certain conditions must me bet by the insurer or beneficiary in order to make the contract enforceable.
Dependent upon the occurrence or happening of an uncertain event.
The chance for both insured or insurer and the dollar values exchanged may be equal.
The chance for both insured or insurer and the dollar values exchanged may not be equal.
Exchange of an act for a promise only made by the insured
Only the insurer makes a promise.
Where there is an exchange of an act (paying premium) for a promise
Exchange of a promise for a promise
A personal agreement between the insurer and the insured
The contract follows the property not the person
Cannot be assigned (transferred without insurer's consent
Each party has a reasonable expectation that the other is attempting to conceal, disguise, or conceal relevant information and material facts.
Each party has a reasonable expectation that the other is not attempting to conceal, disguise, or conceal relevant information and material facts.
Each party already know every information about each other and does not need any further information
Pays amount less than the loss
Pays amount in excess of the loss
Pays amount equal to the loss
Pays a stated sum, regardless of the actual loss incurred, when a covered loss occurs.
Pays a stated sum, only if the actual loss is incurred.
Pays 75% sum, regardless of the actual loss incurred, when a covered loss occurs
Promises described in the insurance contract are to be executed in the future, and only after the actual event has occur
Promises described in the insurance contract are to be executed in the future, regardless if a certain events occur
Promises described in the insurance contract are to be executed in the future, and only after certain events (losses) occur.
Broad principles which forms all insurance policies are Doctrine of Utmost Good Faith and the Doctrine of Reasonable Expectations.
A written instrument in which a contract of insurance is set forth, outlining the obligations and responsibilities of the insured and the insurer
An insurance policy protects the insured from financial losses
Act of deceit or misrepresentation of a material fact made knowingly, with the intention of having another person rely on the fact and consequently suffer a financial hardship.
When the insured unintentionally acts of deceit or misrepresentation of a material fact
An intentional and fraudulent omission, on the part of one insured, to communicate information of matters, proving or tending to prove the falsity of a warrant, entitles the insurer to rescind (void).
Both insurers and their agents, while they are investigating suspected fraud claims, shall have access to all relevant public records that are required to be open for inspection available to them under existing law.
Imprisonment for 1 year in county jail, or state prison for two, three, or five years.
Imprisonment for 1 year in county jail, or state prison up to four years.
Fine of 150,000 or double the value of fraud, whichever is greater
Both fine and imprisonment
Anyone who violates this law and who has prior conviction of this offense must serve two additional years for each prior conviction
Neglecting to communicate that which party knows and out to communicate
Concealment only has to be intentional to entitle the injured party or insurer to void insurance.
Can be intentional or unintentional to entitle the party to void.
Failure to fully disclose all pertinent information.
The importance of the information withheld.
Determined by the event of the insured and insurer
Determined by whether it is probably and reasonable to assume that the fact will influence the other parties estimate of the proposed contract's disadvantages or makes inquires about the contract.
Information that should be known
Information that is relevant to the risk
Information which the other party waives
Information that is not material to the risk
Can be expressed in writing or implied (not in writing).
A warranty can only be in writing
Representation in an insurance contract qualifies as an implied warranty
Found in property and casualty insurance only
Statements that guaranteed to be absolutely true.
The rule used to determine the importance of a misrepresentation.
The rule used to determine the importance of a fraud
The rule used to determine the importance of a concealment
Oral or written statements to the one's best belief or knowledge
Can only be written statements to the one's best belief or knowledge
Made at the time of application or before issuance.
Are implied warranties only
Could be considered a promise
Same as materiality of concealment
False when it fails to correspond with assertions.
Can be altered or withdrawn before the insurance is issued, but not after wards.
Cannot misrepresent policy terms, benefits or privilege, and future dividends payable under the policy.
A mislead in comparison that induces the person to take out a policy, refuse to accept a policy, or lapse, forfeit, or surrender a policy in order to purchase another policy from a different insurer. This is known as twisting
Misrepresentation can only be intentional.
Fine up to 25,000 or up to 3 times the amount of the victim's loss.
If its a misdemeanor than it will be 20,000 or up to 2 years in county jail.
If its a misdemeanor if the loss exceeds 10,000, or up to 1 year in county jail or both fine and imprisonment
Can have license suspended up to 3 years.
An insurer can have their certificate of authority suspended in that class of insurance
The parties between whom the contract is made
The property or life insured
The interest of the insured in property insured, if he/she is not the absolute owner
The financial rating of the insurer is requireed
The risks insured against
The period during which the insurance is continued
Either a statement of the premium or if the insurance is the type where the exact premium can only be determined upon termination of the contract, a statement of the basis, and rates upon which the final premium is to be determined and paid