RMI 3011 Review Exam 1 Legal Characteristics of Insurance Contracts Leatory contract where the values exchanged might not be equal but they depend on a certain event or nonevent o Could be out of balance to the insurance company ie The client pays a certain premium each month but when they finally need to file a claim the damage is way more than they paid o Can be in favor to company if client never needs to use their insurance but still pay every month Communitive where the values exchanged are equal Unilateral contract only one party makes a legally enforceable promise o When you buy insurance you pay a premium and the insurance company promises that they will cover your claim Conditional contract tells a person how they would qualify for coverage or what they must do to qualify Contracts of Adhesion the insured must accept the total contract can be changed or endorsed by a writer but the client must adhere to all conditions presented and agreed upon o Ambiguities almost always turn in favor of the insured
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