5 Essential Principles of Insurance Law and Claims
Classified in Philosophy and ethics
Written on in
English with a size of 2.75 KB
Core Principles Governing Insurance Contracts
Utmost Good Faith (Uberrimae Fidei)
The principle of Utmost Good Faith requires the insured party to disclose all material information to the insurance company (insurer).
- Material information is any data that would affect the insurer’s decision to provide coverage and/or determine the premium charged.
- When completing the proposal form (application form), all questions must be answered truthfully.
- If the insurer discovers that material information was withheld (e.g., during a claim), the contract becomes null and void, resulting in no compensation.
The Principle of Insurable Interest
Insurable Interest dictates that you can only insure something in which you have a legal relationship and a personal financial... Continue reading "5 Essential Principles of Insurance Law and Claims" »