Understanding Insurance Contracts: Key Concepts and Elements
Classified in Philosophy and ethics
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Insurance Contract: Core Concepts
An insurance contract is one whereby the insurer undertakes, by charging a premium, and if the event occurs whose risk is hedged, to compensate within the agreed damage to the insured, or to satisfy a capital, income, or other benefits agreed.
Legal Concept of Insurance (Art. 512 CCo)
Insurance is a bilateral, conditional, random contract by which a natural or legal person takes upon himself for a certain time all or any of the risks of loss or damage that certain objects belonging to another person may face. This is done by forcing through a contract fee to compensate the loss or any other estimable damage suffered by the insured objects.
Parties Involved in an Insurance Contract
- Insurer: The entity assuming the