Chapter 1 Section 1 Part 2 (Done, Brainscape)

Front 1

(three) other elements of a contract needed for it to be enforceable (from insured's perspective)

Back 1

insurable interest
utmost good faith
indemnity

Front 2

insurable interest (need to prove...)

Back 2

would suffer financially by loss

Front 3

indemnity (definition)

Back 3

payment restricted to only that required
to indemnify persons for their losses

Front 4

(four) persons who might have insurable interest in a contract of insurance

Back 4

property owners, business partners
mortgagees
bailees (repair, service, safekeeping)
anyone legally responsible to third party for injury, damage

Front 5

at what point in time is the true measure of indemnity determined?

Back 5

immediately prior to loss

Front 6

(two) how would a client meet the element of Consideration?

Back 6

payment of premium
promise to pay

Front 7

(four) how would a client meet the element of Legal Capacity?

Back 7

minors (be age of majority, contracting for necessities of life)
mental incompetents (not be)
drugs, alcohol (not be under influence of)
trade names (not be)

Front 8

(two) how would a client meet the element of "insurable interest"?

Back 8

would suffer financially by loss
have insurable interest in a contract of insurance... (be the owner of property, mortgagee, bailee, any person held legally responsible to third party)

Front 9

how would a client meet the element of "utmost good faith"?

Back 9

tell truth in application

Front 10

void contract

Back 10

unable in law to support purpose
for which was intended (never existed)

Front 11

voidable contract

Back 11

void to wrongdoer
not void to wronged party (unless so elects)

Front 12

when broker issues "binder" (insurer)

Back 12

committed insurer
to provide contract of insurance

Front 13

binders: oral/written. what should brokers do when they give an oral binder? why?

Back 13

confirm immediately in writing
avoids potential disagreement
(coverages, amounts insured in event of loss occurring before policy issued)

Front 14

(two) places brokers might find limits of binding authority

Back 14

dwelling, contents - half million
commercial building, contents - million

Front 15

explain purpose of insurance (to respond to accidental, future losses)

Back 15

not meant to respond to losses deliberate or
already happened

Front 16

peril (definition)

Back 16

cause of loss

Front 17

(three) ex's direct loss

Back 17

electrical motor in freezer breaking when malfunctions
building after fire, windstorm destroy it

Front 18

(three ex's) indirect loss

Back 18

food in freezer when electrical motor malfunctions
rental income - apartment destroyed by fire
profits to business - building destroyed by windstorm

Front 19

property policies contain description of method(s) used to determine amount of indemnity paid in event of insured loss. (three) factors considered when determining amount pay insured...

Back 19

actual cash value
insurable interest (in property)
limit of insurance (for property lost, destroyed, damaged)

Front 20

which of three factors (to be considered when determining amount to be paid to insured) will be paid to insured?

Back 20

the least

Front 21

actual cash value (definition, 3)

Back 21

new/replacement cost of property
at time of loss
less depreciation

Front 22

(three) factors considered when calculating depreciation

Back 22

condition of object
normal life expectancy
resale value

Front 23

replacement cost (definition)

Back 23

repair/replacement (of)
lost/damaged property (with)
new property (of)
like kind, quality
without deduction for depreciation

Front 24

(three) valued basis

Back 24

both insured, insurer
agree at time policy issued
cash value of property

Front 25

(2 ex's) property that may be insured on valued basis

Back 25

old jewellery
antiques

Front 26

contract (definition, 4)

Back 26

agreement between 2+ persons
creates obligation
to do or not do
particular thing