NH TC STU Lecture 2 Insurance Contract TTH 2012

8/2/2019 NH TC STU Lecture 2 Insurance Contract TTH 2012

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INSURANCE CONTRACT

MA. Ton Thi Thanh Huyen

Insurance Faculty- NEU


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Main points

1. Introduction to insurance contract

2. Forming insurance contract

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1. Introduction to Insurance contract

What is Insurance Contract?

Commitment in the written word

2 parties: Insurer Participant

transforming the risk

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Insurance Contract

Civil contract or

Commercial contract?

Conditional contract

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Requirements of a valid ins. contract

On the subject matter

On parties capability

On parties acceptance


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On the subject matter

Existence of the subject matter

Origin of the subject matter

On parties capability

Legal ability

Financial ability


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On parties acceptance

No default

No duress

No misunderstanding

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Types of insurance contract

Voluntary/compulsory ins. contract

Core/additional ins. contract

Group/private ins. contract

Package/single ins. contract

Ins. contract for the interest of own participant/for the

interest of the third person

Property/ Liability/Health & Life ins. Contract

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Stakeholders of ins. contract

The Insurer

The Purchaser

The Insured

The Beneficiary

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Rights & Obligations of the parties

The participant

?????

The insurer

???????

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February 12 11

Features of insurance contract

Bi-lateral

Adhesion

Utmost good faith

Aleatory

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February 12 12

2. Forming an insurance contract

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Announcing the refusal

The Proposal

Issuing Insurance policy

Declaring informationof risks

The proposer

Evaluating

proposed

risks

Issuing cover noteThe insurer


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February 12 13

The Proposal

The questionnaire designed by the insurer in order to

gather all information of proposed risks.

Expressing the applicants will to reach an insurance

contract. Supplying information to evaluate the proposed risks.

Main content of a proposal have to:

Describe the subject matter;

Describe the risk;

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February 12 14

Structure of the proposal including 4 parts:

(1) General questions

(2) Specific questions related to the proposed risks

(3) Commitments(4) Warnings

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The Proposal


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Obligation of information disclosure

Basic facts

Misrepresentation or non-representation

Innocent? Intentional?

Responsibility of proof

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The Cover Note

A temporary certification of insurance commitment

between 2 parties.

To get a cover note:

After the proposal is considered preliminarily

After the premium is paid in total or in a part (exceptions for some

insurance)

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February 12 17

The Cover Note

The effect of a cover note

Temporary (normally in 30 days)

All claims in these days belongs to the responsibilityof the insurer

Being ceased when:

?????

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The Policy

The evidence in writing of an insurance contract

Principles of representing the policy:

Strict, logical structure

Standard grammar rules

Simple words

Clear language

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The Policy - Structure of the policy

Heading

Preamble

Signature clause

Operative clause

Exceptions

Conditions

Schedule Definition

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General clauses:

Being applied for all policies in the same insurance line;

Designing the standard form for the insurance line:

Insurable risks;Exceptions;

Authority;

Rights and obligations of parties;

Limited time for making claim;

The place of adjusting; paying; etc.

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The Policy-operative clauses


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Specific clauses: making differences among various

policies in the same insurance line:

personal data;

the subject matter;

features of insured risks;

The premium; etc.

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The Policy-operative clauses


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February 12 22

The Policy-conditions

In order to regulate the coverage of the policy:

What the insurer or the insured is able to do?

What they have not to do?

What they have to do? And

What they do?

Example:

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NH TC STU Lecture 2 Insurance Contract TTH 2012

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