Chapter 2. The Insurance Contract
Terms you'll need to understand:
Indemnity
Aleatory contract
Contract of adhesion
Unilateral contract
Declarations
Insuring agreement
Conditions
Exclusions
Concepts you'll need to master:
Competent parties
Legal purpose
Offer and acceptance
Consideration
Utmost good faith
A contract is a legal agreement between two or more competent parties that promises a certain performance in exchange for a certain consideration. When an insurance company agrees to pay for an insured's losses in exchange for a certain premium, the two parties have entered into a contract. Although a contract of insurance can be oral, it is usually written in the form of an insurance policy.
Elements of a Valid Contract
Insurance contracts, like all other contracts, ...
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