Policy Provisions And Contract Law

Front 1

Four essential elements of insurance contract

Back 1

1. agreement - offer and acceptance

2. consideration

3. competent parties

4. legal purpose

Front 2

Acceptance

Back 2

takes place when an insurer's underwriter approves the application and issues a policy

Front 3

Consideration

Back 3

something of value that each party gives to the other.

Front 4

Representations

Back 4

statements believed to be true to the best of one's knowledge, but they are not guaranteed to be true.

Front 5

misrepresentations

Back 5

untrue statements on the application that could void the contract

Front 6

warranty

Back 6

is an absolutely true statement upon which the validity of the insurance policy depends.

Front 7

concealment

Back 7

is the legal term for the intentional withholding of a material fact which is crucial in making an underwriting decision.