When you have finished this chapter, you should be able to
The transfer of risk from the individual to the insurance company is accomplished through a contractual arrangement under which the insurance company, in consideration of the premium paid by the insured and his or her promise to abide by the provisions of the contract, promises to indemnify the insured or pay an agreed amount in the event of the specified loss. The instrument through which this transfer of risk is accomplished is the insurance contract, which, as a contract, is enforceable by law.
A great deal of the law that has shaped the formal structure of insurance and influenced its content derives from the general law of contracts. But because ...