A property or liability insurance policy is a "personal contract," a "conditional contract," a "unilateral contract," a "contract of adhesion," a "contract of indemnity," and a contract which requires that the person insured have an insurable interest at the time of the insured-against contingency.
Further: An Insurance Contract is one of Uberrima fides. This is a Latin phrase meaning "utmost good faith" . It is the name of a legal doctrine which governs insurance contracts. This means that all parties to an insurance contract must deal in utmost good faith, making a full declaration of all material facts in the insurance proposal. Under utmost good faith contracts if there is a violation it is categorized as a material misrepresentation, a breach of a warranty, or a concealment. Insureds can also go after insurers for a breach of utmost good faith. Normal business contracts are "good faith contracts" and can result in contract enforcement, monetary damages or both. If the contract cannot be performed or is unconsionable, the contract can be set aside. This contrasts with the legal doctrine of caveat emptor . Caveat emptor does not come into play in insurance contracts. The buyer does have an obligation to read the contract and if is not understood to ask the sales agent to explain. It is best to get the explanations in writing.
Further: An Insurance Contract is one of Uberrima fides. This is a Latin phrase meaning "utmost good faith" . It is the name of a legal doctrine which governs insurance contracts. This means that all parties to an insurance contract must deal in utmost good faith, making a full declaration of all material facts in the insurance proposal. Under utmost good faith contracts if there is a violation it is categorized as a material misrepresentation, a breach of a warranty, or a concealment. Insureds can also go after insurers for a breach of utmost good faith. Normal business contracts are "good faith contracts" and can result in contract enforcement, monetary damages or both. If the contract cannot be performed or is unconsionable, the contract can be set aside. This contrasts with the legal doctrine of caveat emptor . Caveat emptor does not come into play in insurance contracts. The buyer does have an obligation to read the contract and if is not understood to ask the sales agent to explain. It is best to get the explanations in writing.
