Insurance Contracts

Übersicht

Every policy you will ever study begins life as a contract, and a contract is nothing more than a promise the law is willing to enforce. Before an insurer pays a single naira, before indemnity or subrogation or any other principle can bite, there must first be a valid agreement between two parties. Get the foundation wrong and the whole policy can collapse as if it never existed.

In this lesson you will learn exactly what an insurance contract is and how it differs from buying bread or hiring a taxi, who the two parties are and what each must do, and the six essentials the law demands before it will call an agreement binding: offer, acceptance, consideration, capacity, legality and consent. You will then meet the one feature that sets insurance apart from almost every other contract in commerce, the duty of the utmost good faith, and learn to test any arrangement and say whether it truly holds.

Ziele

  1. Define an insurance contract and distinguish it from other commercial contracts
  2. Identify the parties to an insurance contract and state the role of each
  3. Explain the essential features of a valid contract: offer, acceptance, consideration, capacity, legality and consent
  4. Apply the essential features to determine whether a given insurance arrangement is legally valid
  5. Explain why an insurance contract is described as a contract of the utmost good faith

Lektionshinweis

A young driver in Ibadan fills in a form, hands over ₦35,000 and drives away believing he is insured. Three weeks later he dents another car and makes a claim, only to be told there is no contract at all. How can that be, when he paid his money and holds a receipt? The answer lies in the rules that turn a loose arrangement into a binding contract. Money changing hands is not enough. A valid insurance contract has parts that must all be present, and if even one is missing the agreement is empty. Master these rules and you can look at any insurance arrangement and say, with confidence, whether the law will stand behind it.

Unterrichtsbewertung

Herzlichen Glückwunsch zum Abschluss der Lektion über Insurance Contracts. Jetzt, da Sie die wichtigsten Konzepte und Ideen erkundet haben,

Sie werden auf eine Mischung verschiedener Fragetypen stoßen, darunter Multiple-Choice-Fragen, Kurzantwortfragen und Aufsatzfragen. Jede Frage ist sorgfältig ausgearbeitet, um verschiedene Aspekte Ihres Wissens und Ihrer kritischen Denkfähigkeiten zu bewerten.

Nutzen Sie diesen Bewertungsteil als Gelegenheit, Ihr Verständnis des Themas zu festigen und Bereiche zu identifizieren, in denen Sie möglicherweise zusätzlichen Lernbedarf haben.

  1. The two parties to an insurance contract are the: A. Agent and the broker B. Insured and the insurer C. Proposer and the loss adjuster D. Underwriter and the reinsurer Answer: B
  2. In insurance, a completed and submitted proposal form is best regarded as: A. An invitation to treat B. An acceptance C. An offer D. A counter offer Answer: C
  3. Which of the following is NOT an essential feature of a valid insurance contract? A. Offer and acceptance B. Consideration C. Salvage D. Legality Answer: C
  4. The consideration provided by the insurer in an insurance contract is the: A. Premium B. Promise to pay a valid claim C. Proposal form D. Sum insured Answer: B
  5. An agreement to insure goods that are being smuggled into the country is: A. Valid and enforceable B. Voidable at the insurer's option C. Void for lack of legality D. Binding once the premium is paid Answer: C

Empfohlene Bücher

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Untertitel: Thirteenth edition
Verleger: Pearson
Jahr: 2016
ISBN: 978-0-13-408257-8
Beschreibung: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Untertitel: Tenth edition
Verleger: Wiley
Jahr: 2008
ISBN: 978-0-470-08753-4
Beschreibung: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Untertitel: Second edition
Verleger: Himalaya Publishing House
Jahr: 2017
ISBN: 978-93-5097-079-9
Beschreibung: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Frühere Fragen

Fragen Sie sich, wie frühere Prüfungsfragen zu diesem Thema aussehen? Hier sind n Fragen zu Insurance Contracts aus den vergangenen Jahren.

WAEC SSCE - Insurance - 2017

Frage 1 Bericht

(a)(i) What is a proposal form?
(ii) List four general questions that are contained in a proposal form.

(b) List and explain three documents used in effecting insurance contracts. 
 

Antwort anzeigen