Elements of a legal contract (health insurance) and contract law

1. Agreement

offer and acceptance

4. Legal Purpose

The purpose of the contract must be legal and not against public policy. To ensure legal purpose of a Life Insurance policy, for example, it must have both: insurable interest and consent. A contract without a legal purpose is considered void, and cannot be enforced by any party.

Contract

An agreement between two or more parties that is enforceable by law because of the unique aspects of insurance transactions the general law of contracts had to be modified to fit the needs of the insurance.

2. Consideration

Applicant representation or premium cash exchange or the insurers payment of claims

3. Competant parties

They must be a. The legal age b. Mentally competent c. Not under the influence of illegal drugs and alcohol