THE KEY ELEMENTS 1. OFFER & ACCEPTANCE An offer by the company/ agent marks the
ID: 374247 • Letter: T
Question
THE KEY ELEMENTS
1. OFFER & ACCEPTANCE
An offer by the company/ agent marks the beginning of the offer, agent may accept the offer on behalf of the company if offer meets the company's policies. Till the time the acceptance is not done the offering party is not covered by company. Company/Agent may require a detailed set of documents or first premium in order to accept the offer.
2. CAPABLE PARTIES
Both parties should be legally competent or capable in every legal aspect and should not be disqualified from the contract by law.
3. INSURANCE INTEREST
Company is liable to pay insurance interest whenever there is a financial loss under the norms of insurance policy.
4. LEGAL CONSIDERATION
It legally binds both parties i.e, company is liable to pay claims and other party is liable to pay premiums under the conditions.
5. FREE CONSENT
Both party should enter the contract without any coercion.
6. RISK FACTS
Factors affecting risk should be mentioned and whether insurance company is willing to accept those risks and on what terms.
7. COMPLETE DISCLOSURE
There should be no hidden terms or conditions which can be discredited under the contract law.
8. PRINCIPLE OF INDEMNITIES
Company is liable to pay the compensation against a valid proof of loss which is with no intention of making profits out of compensation. No fraudelent activities are tolerated.
9. DOCTRINE OF SUBROGATION
Insurance loss reimbursed by a company can be legally collected afterwards by the third party covering the insurance loss.
10. CONDITIONS
All the conditions such as policies, age, medical health, credit score, failing to provide premium or on which terms company will fail to cover the loss are mentioned clearly in the contract.
Explanation / Answer
What are three key indicators used to measure the performance of a portfolio of insurance policies.
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