What are conditions in an insurance policy?

What are the five basic parts in an insurance contract?

Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. Many policies contain a sixth part: endorsements. Use these sections as guideposts in reviewing the policies.

What information is found in the conditions part of an insurance policy quizlet?

What information is found in the conditions part of an insurance policy? The description of the duties and obligations of the insured.

What is listed in the conditions section of a policy?

Policy Conditions — the section of an insurance policy that identifies general requirements of an insured and the insurer on matters such as loss reporting and settlement, property valuation, other insurance, subrogation rights, and cancellation and nonrenewal.

Which policy consists of the declarations and conditions endorsements?

They are usually extremely favorable because the eligible types of risks usually have a lower potential for loss. Which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance? A monoline policy is a policy that contains only one coverage part.

What type of information would be found in a policy insurance agreement?

Insuring agreement. This provides information on the policy's coverages. Conditions state the legal obligations and duties of the parties to the contract.

Which of the following best describes a conditional insurance contract?

Which of the following BEST describes a conditional insurance contract? A contract that requires certain conditions or acts by the insured individual This means that the insurer's promise to pay benefits depends on the occurrence of an event covered by the contract.

What would happen if a life insurance applicant is given a conditional receipt?

A conditional receipt gives the company time to process the application and to issue or refuse the policy. If the applicant were to die before a policy is issued, the company will pay the death benefit but only if the policy would have been issued.

Why are insurance policies considered conditional contracts quizlet?

Because certain future conditions or acts must occur before any claims can be paid, insurance contracts are known as conditional.

What consideration is required for an insurance policy to be valid?

The insurance company's consideration is its good faith promise to pay benefits when and as defined in the policy. not under the influence of drugs or alcohol. Most states stipulate a certain minimum age for a person to be deemed legally competent to purchase an insurance contract.

Is Insuring agreement a condition on an insurance policy?

Insuring Agreement — that portion of the insurance policy in which the insurer promises to make payment to or on behalf of the insured. The insuring agreement is usually contained in a coverage form from which a policy is constructed.

Which condition provides the insurer the right to collect against a responsible third party?

Subrogation is a term describing a right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. This is done in order to recover the amount of the claim paid by the insurance carrier to the insured for the loss.

Which condition prevents the insured from collecting twice for the same loss?

Subrogation. When insureds accept loss payment from the insurance company, they must transfer their rights to recovery to the insurer. This prevents the insured from collecting twice for the same loss, and allows the insurer to indemnify the insurance company.

What are the 7 principles of insurance?

What is not the consideration in a policy?

Lack of consideration means that one of the parties to a contract is not obligated in any way, while the other party holds all obligation to act. Generally, courts will not interfere with parties to a contract.

In what sense is an insurance contract conditional?

Conditional. An insurance contract is conditional. This means that the insurer's promise to pay benefits depends on the occurrence of an event covered by the contract. If the event does not materialize, no benefits are paid.

In which circumstances would a buyer most likely sue for specific performance?

In which circumstances would a buyer most likely sue for specific performance? The seller backed out of the original sales contract.

Why are insurance policies are considered aleatory contracts?

Aleatory Contract — an agreement concerned with an uncertain event that provides for unequal transfer of value between the parties. Insurance policies are aleatory contracts because an insured can pay premiums for many years without sustaining a covered loss.

When an insured is restored to the same financial condition as before the loss this is an example of?

If a material warrant violation on the part of the insured if found, what recourse does an insurer have? Restoring an insured to the same condition as before a loss is an example of the principle of: One party is restored to the same financial position the party was in before the loss occurred.

What is the difference between a conditional receipt and a binding receipt?

under a conditional receipt , a death claim will NOT be paid if the application is declined by the underwriter . under the binding receipt a death claim will be paid whether or not the applicants application is approved by the underwriter.

What is a conditional premium receipt in insurance?

A conditional receipt is a document given to someone who applies for an insurance contract and has provided the initial premium payment. This receipt means that the person can only be insured if he or she meets the standards of insurability and is given approval by the insurance company.