Page 29 - Life Assurance

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Summary

1- An understanding of legal principles is
necessary to understand the insurance contract.

There are several differences in the
application of these legal principles to life
insurance as opposed to general insurance.

2- The principles of indemnity and
subrogation are closely related to the principle
of insurable interest. Both are necessary to
reinforce the principle of insurable interest.
Insurable interest is necessary for any insurance
contract (life or general insurance) to be valid.

3- Insurance is a contract of utmost good
faith.

4- The insurance contract must meet the
general legal requirements of contracts.

Thus the insurance contract must not be
against public policy (legality). It must be enacted
by parties with (legal capacity) to contract, must
be affected with a meeting of the minds (offer and
acceptance) and must be supported by a
monetary (consideration).

93 Life41/life/life 08