Valid insurance contract

by Guest » Mon Jun 21, 2010 10:49 am
Guest

I have both my life and health insurance documents piled up in my file. I guess it's a tough job to follow an insurance contract all by myself and I don't think our agents are that efficient to explain everything. Does anyone have a clear understanding of a legitimate insurance contract?

Total Comments: 4

Posted: Tue Jun 22, 2010 03:30 am Post Subject:

Um, you pay a premium to indemnify a certain event, if loss occurs while the policy is in force, the insurance company indemnifies the loss.

Posted: Tue Jun 22, 2010 10:58 am Post Subject:

The first clause perhaps depicts the 'Offer n acceptance'. The process through which you sign your application form and submit it with your carrier is called the 'Offer'. On the other hand, your insurer's agreement to cover you for a said event is perhaps his 'acceptance'.

Posted: Wed Jun 23, 2010 10:35 am Post Subject:

One of the important aspects of your insurance contract is your legal competency. You may only be eligible to enter into an agreement if you're not mentally ill or if you're not a minor.

Posted: Thu Jun 24, 2010 07:24 am Post Subject:

The doctrine of good faith is another important factor. It stresses upon the mutual faith that exists between the insurance carrier and the insured. You must not hide anything from your insurer during underwriting. On the other hand, it's the responsibility of your carrier to explain all the policy conditions to you.

Add your comment

Image CAPTCHA
Enter the characters shown in the image.