Legal Purpose
Implied Authority Innocent
Valued Policy
Conditional Premium Receipt
Principle of Utmost Good Faith
Contract of Adhesion
Representations
Aleatory Contract
Conditions
Subrogation
a principle that states a higher degree of honesty is imposed on both parties to an insurance contract than is imposed on parties to other contracts.
substitution of the insurer in place of insured for the purpose of claiming indemnity payments from a negligent third party for a loss covered by insurance. The insurer is entitled to recover from a negligent third party any loss payments made to the insured.
statements made by an applicant for insurance (for example, in life insurance) such as the applicant's occupation, state of health, and family history.
one in which the values exchanged may not be equal but depend on an uncertain event.
a receipt given to the applicant for life insurance; if the applicant is found insurable according to the insurers underwriting standards, the life insurance becomes effective as of the date of application, or in some premium receipts, the date of application or the date of the medical exam, whichever is alter.
an insurance contract must be for a legal purpose; an insurance policy that promotes something illegal is contrary to the public interest and cannot be enforced.
the insured must accept the entire contract, with all of its terms and conditions; if there is ambiguity in the contract it is constructed against the insurer.
policy that pays the face amount of insurance, regardless of actual cash value, if a total loss occurs.
provisions inserted in an insurance contract that qualify or place limitations on the insurer's promise to perform.
which refers to the authority of the agent to perform all incidental acts necessary to fulfill the purpose of the agency agreement.
