Suppose you live in your uncle`s house and apply for homeowner`s insurance because you think you can inherit the house later. Insurers will refuse your offer because you do not own the house and therefore will not have to suffer financially in the event of a loss. When it comes to insurance, the house, car or machinery is not insured. Rather, it is the monetary interest for this house, the car or the machines, to which your policy applies. An insurance contract is a document that constitutes the agreement between an insurance company and the insured. At the heart of an insurance contract is the insurance contract that defines the risks covered, the limits of the policy and the duration of the policy. In addition, all insurance contracts stipulate that a following condition is a condition that must be met as a result of an event that requires an action from the insurer. For example, if the insurance company intends to exercise its right of withdrawal and sue a third party because of the insured`s claim, the insurer may ask the insured to testify in court. In insurance, the insurance policy is a contract (usually a standard form contract) between the insurer and the policyholder, which determines the fees that the insurer must pay legally.
In exchange for a first payment, called a premium, the insurer promises to pay for losses caused by watery hazards that fall within the language of insurance. The doctrine of adhesion. The membership doctrine states that you must accept the entire insurance contract and all its terms, without negotiation. Since the insured does not have the opportunity to change the terms, any ambiguities in the contract are interpreted in his favour. Insurers have been criticized in some quarters for implementing complex policies with levels of interaction between coverage clauses, conditions, exclusions and exclusions. In one case where an ancestor of the modern “Product Exploitation Hazard” clause was interpreted, the California Supreme Court complained that insurance contracts can be terminated by mutual agreement – correction. The insured may terminate the contract by not paying the premium. If the insurance company has fraud thefts, it can ask a court to unilaterally revoke a contract. However, life insurance generally has an indisputable clause that prevents an insurer from terminating life insurance after a period of 1 or 2 years.
The initial period gives the insurance company time to verify the facts in the notification and possibly revoke the contract if it detects fraud. However, at the end of this period, life insurance may be terminated by the company for a reason other than non-payment of the premium. In the United States, in-kind and accident insurers generally use similar, if not identical, language in their standard insurance, designed by advisory bodies such as the Insurance Services Office and the American Association of Insurance Services.  This reduces the regulatory burden on insurers, since forms of insurance must be approved by the states; it also makes it easier for consumers to compare policies, albeit at the expense of consumer choice.  In addition, when the political forms of the courts are reviewed, interpretations become more predictable when the courts develop the interpretation of the same clauses in the same forms of insurance and not the policies of different insurers.  The rules of the management authorities are multiple.