The guarantee is a very important condition in the insurance contract, which must be fulfilled by the insured. In the event of a breach of guarantee, the insurer is released from its liability. In the case of life insurance, the essential facts or factors influencing the risk are age, residence, occupation, health, income, etc., and in the case of property insurance, it would use the design, ownership and location of the property. In the event that you overfund or overpay your insurance premiums, the return of the premium clause guarantees the return of the excess premiums paid or credits the deductible for the following insurance period. The guarantees are all the respective promises set out in the insurance contract. They describe the specific conditions that can trigger a claim and also describe the actions taken by the insurance company based on the claim. In life insurance, the premium is not very variable, while the premiums of other insurance policies are variable in many forms. (For more information on non-compensation contracts, see “Purchase of life insurance: duration versus duration” and “Transfer of ownership of life insurance.”) The doctrine of disclosure of all material facts is enshrined in the important principle of “good faith” that applies to all forms of insurance. Both parties to any insurance contract must enter into the contract with free consent, which means that this is done at their own request. No fraud, misrepresentation, intimidation or coercion must be involved in the signing of the contract.
The contract also cannot be signed due to an error. In the proposal of the insured object, it is asked what must be legal and the object must not be hidden. If it turns out that the purpose of the insurance, such as the consideration, is illegal, the policy is invalid. In the case of all-risk insurance, the clauses provide that if the insured ship is at sea or in a port of refuge at the end of the policy. A distinction must be made between the assignment of (a) the subject matter of the insurance, (b) the policy, and (c) the money in the policy if it is payable. Let`s say you live in your uncle`s house and apply for home insurance because you think you can inherit the house later. Insurers will reject your offer because you are not the owner of the home and therefore you will not suffer financially in the event of a loss. When it comes to insurance, the house, car or machine is not insured. Rather, it is the monetary interest in that house, car or machinery to which your policy applies. The assignment in the fire insurance can not be recognized without the prior consent of the insurer, a change of interest in the fire insurance (unless it is a will or a law) is not valid, unless the consent of the insurer has been given. Other forms of insurance do not offer investment, as the premium paid is not refundable if unforeseen events (risks) do not occur in the period. The insured and the insurer are legally obliged or required to disclose all material facts accurately and accurately.
The insured does this when completing the application, and the insurance company does so in accordance with all laws and rules that apply to him. If you provide incorrect information to deceive, your insurance contract will become invalid. No premium is refundable on the policy in relation to the film insured by it, and if the double insurance is knowingly affected by the insured film, no premium is refundable. The determination of the true cause depends on the operation and practice of insurance and the circumstances of the losses. A loss must not be caused by a single event. Insurance contracts are only valid if both parties are sane of mind and body, legally referred to as “competent parties”. The insured must be at least of legal age and the insurance company must be licensed in the State in which the insured resides. There are certain additional factors in your insurance contract that create situations where the total value of an insured asset is not remunerated. This represents the dollar value of the premiums the insured is willing to pay and the dollar limit of the coverage the insurer offers in return.
If the insurance company receives a claim covered by the policy, the insurer pays that claim. Mark has over 25 years of experience in the financial industry and has worked with investments, insurance and mortgages, as well as tax preparation and comprehensive financial planning. This means that both parties are required to fully disclose all material facts relevant to the insurance policy. There must be no omissions, misrepresentations or distortions of facts when filling out the application or providing the policy. Since most insurance contracts are simple contracts, they do not necessarily have to be written. A minor is not contractually capable. A minor`s contract is void, with the exception of contracts for the necessary. A minor cannot sign a contract. Statements usually appear on the first page of your policy, called the declaration page, title page, or policy cover page. The site identifies you as an insured, describes the risks to be covered (such as property, life or health), the limits of the policy and the period during which the policy will be in effect.
A title page or auto insurance statement would describe the insured vehicle (make, model, year, color, style, vehicle identification number), your name (if you are insured), premium amounts and conditions (p.B.400 on January 1 and July 1 of each year), and the amount of the deductible. .