term1 Definition1term2 Definition2term3 Definition3
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Four essential elements of insurance contract
1. agreement - offer and acceptance
2. consideration
3. competent parties
4. legal purpose
Acceptance
takes place when an insurer's underwriter approves the application and issues a policy
Consideration
something of value that each party gives to the other.
Representations
statements believed to be true to the best of one's knowledge, but they are not guaranteed to be true.
misrepresentations
untrue statements on the application that could void the contract
warranty
is an absolutely true statement upon which the validity of the insurance policy depends.
concealment
is the legal term for the intentional withholding of a material fact which is crucial in making an underwriting decision.
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