Elements| Tulsa Auto Insurance
Elements of a cheapest car insurance contract.
Elements| Tulsa Auto Insurance Now would do a study to familiarize you with the principles of a valid cheapest Tulsa Auto Insurance contract, this look closely at the contract itself and only to build a contract or a cheapest car insurance contract first you must have a consideration put forward in the form of an agreement by an insurer or a writer of the cheapest Tulsa Auto Insurance contract and the insured a party accepting the agreement this would give you the foundation of the policy in which to write a cheapest car insurance contract. You, no doubt are familiar with the term contract. A contract is a legal agreement between two competent parties that promise a certain performance in exchange for a certain consideration when an insurance company agrees to write the cheap the cheapest Tulsa Auto Insurance policy they are agreeing to pay for the insured’s loss in exchange for a certain premium, the two parties have entered into a contract. Although a contract for the cheapest car insurance policy may be oral, it is usually written in the form of an insurance policy. The cheapest Tulsa Auto Insurance contracts, like all other contracts, must exhibit certain characteristics to be legally enforceable. Therefore these characteristics of the cheapest Tulsa Auto Insurance can policy are: competent parties, a legal purpose, and offer and acceptance agreement, and a consideration.
The contract for the cheapest Tulsa Auto Insurance is not valid unless it is made between two parties who are considered competent under the law. In most cases, a person who is a minor, insane, or under the influence of alcohol or drugs is considered incompetent.
The second requirement for a valid contract is that it to be formed for any legal purpose the cheapest Tulsa Auto Insurance contract that is against public policy are not in the best interest of the public or is in violation of the law is not susceptible. The third elements of a valid contract for the Tulsa Auto Insurance is an offer and acceptance, that means that the contract involves two parties one who makes an offer and one who accepts it. This is also called an agreement for the cheapest car insurance and offer is a promise that requires an act or a REIT promise in exchange. Acceptance occurs when the other party agrees to the offer and does what was proposed in the offer. Example Mike fills out an application for the cheapest car insurance and sends it to the XYZ insurance company who agrees to provide the cheapest car insurance to Mike.
The last requirement for a valid contract for the cheapest Tulsa Auto Insurance is that it involves a consideration. Consideration is something of value he changed for the performance promised in the contract of the cheapest car insurance. They consideration that the insured gives is to promise to pay for certain losses suffered by the insured in case of an accident.
The characteristics of the cheapest Tulsa Auto Insurance contract
principle of indemnity
in addition to the characteristics in the cheapest Tulsa Auto Insurance contract which it shares with the other valid contracts is that it also has some special features of its own one will have the amount of the covered loss and the reimbursement of the covered loss one of the most important characteristics of the cheapest, it Tulsa Auto Insurance contract is the contract of indemnity. The principle of indemnity states that when the loss occurs, the individual should be restored to the approximate financial consideration that he was in before the loss, no more no less for example
if the insured bought an automobile four years ago for $15,000 and the day it was worth $6000 according to the principle of indemnity the insured should receive no more than $6000 if the car is demolished. Another example if you loan your laptop computer to a friend and it is destroyed in the fire at the friend’s house your friend offers to pay you for the computer. You also have insurance that would cover the loss. According to the principles of indemnity you should not be able to collect the full amount of this loss from both your friend and the insurance company.
The principle of indemnity is closely related to both the requirement of an insurable interest and the exclusion of a speculator risk that we discussed earlier. An insured may only be indemnified to the extent of his insurable interest. Insurance is not gambling – the insured doesn’t win our lose. The insured may only be returned to the approximate financial condition that he occupied before the loss occurred suppose that Harry and his cousin owned 50% of the hundred and $60,000 duplex suppose Harry purchases $160,000 of insurance on the duplex. If it burns to the ground, Harry should not be able to collect more than 80,000
an insurance contract does not ensure property; it ensures the person who owns the property. That means it is a personal contract. Not only is it a personal contract it is a Leah Tori contract. An insurance contract is a lift Tori, which means it is contingent on an uncertain event, the loss, that provides for an un-equal transfer of value between the parties. An insured can pay premiums for many years without having a covered loss and then on the other hand, insureds who suffer a loss often get a great deal more from the insurance company than what they had paid in premiums. An insurance contract is also an adhesion contract, we mean that one party has greater power over the other party in drafting the contract. The provision of the contracts are prepared by one party – the insurer the other party, the insured, does not take part in the preparation of the contract. Although the insured may re-request special provisions or special coverages, it is the insurance company that ultimately drawls up and issues the policy. A problem that sometimes arises in insurance contracts is ambiguity, which occurs when the insured doesn’t make the terms and the agreements of the policy perfectly clear. Since it is an insurance policy is an adhesion contract, the courts usually will resolve any ambiguity in the policy wording in favor of the insured. When doing so, the courts may rely on the doctrine of reasonable expectations, which state that a policy includes coverage that an average person would reasonably expect to be included, regardless of what the policy actually provides.
Elements | Tulsa Auto Insurance
Elements | Tulsa Auto Insurance
Elements | Tulsa Auto Insurance