17 Okt Written Agreement In Insurance
An insurance contract is a document that constitutes the agreement between an insurance company and the insured. At the heart of any insurance contract is the insurance contract, which defines the risks covered, the limits of the policy and the duration of the policy. In addition, all insurance contracts stipulate: A subsequent condition is a condition that must be met after an event that required action by the insurer. For example, if the insurance company wants to exercise its claim rights and sue a 3rd party for the cause of the insured`s damages, the insurer may require the insured to testify in court. Co-insurance is the division of insurance by two or more insurance companies in an agreed ratio. For the insurance of a large shopping mall, for example, the risk is very high. As a result, the insurance company may use two or more insurers to share the risk. Co-insurance may also exist between you and your insurance company. This provision is very popular in health insurance, where you and the insurance company decide to divide the covered costs in a 20:80 ratio. Therefore, your insurer pays 80% of the damage covered during the claim, while you pay the remaining 20%. Reinsurance occurs when your insurer “sells” part of your coverage to another insurance company. Let`s say you`re a famous rock star and you want your voice to be assured for $50 million. Your offer will be accepted by Insurance Company A.
However, insurance company A is not able to retain all the risks, so it passes on some of that risk – say $40 million – to insurance company B. If you lose your singing voice, you will receive $50 million from insurer A ($10 million + $40 million), with insurer B paying the reinsured amount ($40 million) to insurer A. This practice is called reinsurance. In general, reinsurance is practised to a much greater extent by general insurers than by life insurers. All insurance contracts are based on the concept of uberrima fides or the doctrine of the greatest good faith. This doctrine emphasizes the existence of mutual trust between the insured and the insurer. Simply put, when you apply for insurance, it becomes your duty to honestly disclose your relevant facts and information to the insurer. Similarly, the insurer cannot hide information about the insurance coverage sold. In recent years, however, insurers have increasingly modified standard forms on a company-specific basis or rejected changes to standard forms. For example, a review of home insurance policies revealed significant differences between the different regulations.
 In some areas, such as senior executive liability insurance and private umbrella insurance, there is little industry-wide standardization. Beneficiaries can be changed because the change of beneficiaries does not change the insured risk, so there are no consequences for the insurer if the policyholder changes beneficiary, but the insurer must be informed before the change has legal effect. This is to protect the insurance company from paying the wrong person or being forced to pay twice. Insurance contracts have an additional requirement that they be in the legal form.. .