Term
| According to the law of contracts, elements that must be present in order for any contract to be legal and enforceable in a court of law include: |
|
Definition
1.) Offer and Acceptance
2.) Consideration
3.) Competent Parties
4.) Legal Purpose |
|
|
Term
| Distinct characteristics of an insurance contract include the following 6 charateristics: |
|
Definition
1.) Unilateral
2.) Adhesion
3.) Aleatory
4.) Conditional
5.) Personal
6.) Utmost Good Faith |
|
|
Term
| What is Unilateral, in contract law? |
|
Definition
| Insurance policy is unilateral since it's language is developed by one party. |
|
|
Term
| What is Adhesion, in contract law? |
|
Definition
| Contract language is drawn up by one party (Insurance company) and other side agrees to terms. |
|
|
Term
| What is Aleatory, in contract law? |
|
Definition
| Contract in which one party may recover more in value than he or she has parted with based upon a possible future event. |
|
|
Term
| Definition of Representations |
|
Definition
| Oral or written statements made by an applicant for insurance that are recorded on the application. |
|
|
Term
| Definition of Misrepresentations |
|
Definition
| False Statement made by an applicant. |
|
|
Term
| Definition of Material Misrepresentation |
|
Definition
| Material fact that, had it been known by the insurer at the time of application, would have caused the insurer to reject the application. Material Misrepresentation can cause a policy to become void. |
|
|
Term
|
Definition
| A representation made by the applicant/insured that is guaranteed to be absolutely true. |
|
|
Term
| Definition of Concealment |
|
Definition
| The failure to disclose material facts is considered to be concealment. |
|
|
Term
|
Definition
| Deliberate knowledge of or intentional deceit with the objective of making false statements. |
|
|
Term
|
Definition
| Voluntary surrendering of a known right. Also, defined as "the deliberate, voluntary or intentional abandonment of a known right by the insurer." |
|
|
Term
|
Definition
| Legal principle involving a broken promise. It prohibits an insurer from denying a claim due to specific actions by the insurer or it's representatives or due to inaction by the insurer. |
|
|
