life insurance contract law
rescission
The practice of one party canceling or terminated a contract, which has the effect of returning the parties to their original positions before the contract was made.
conditional contract
certain conditions and parameters must be met by the owner and the company in order for the contract to be executed.
consequences of rescission in insurance
client loses right to claim policy, insurer refunds all money paid
personal contract
contract between the insurance company and an individual
agreement
definite offer by one party that is accepted as is by another party.
intentional tort
deliberate act that causes harm to another person regardless of whether the offending part intended to injure.
principle of utmost good faith
each party must be able to rely on the other for valid and critical information
competent parties
generally, all parties must be capable of the contract's agreement in the eyes of the law. must be of legal age, not drugged, and mentally able to understand the contract
jail time of penal code section 550
imprisonment in a county jail for 1 year or instate prison for 2,3 or 5 years
legal purpose
the purpose of the contract must be legal and not against public policy
contract of adhesion
when the contract is prepared by one party (insurer) and accepted or rejected by the other party (the insured), the 'take it or leave it'
contracts
written agreements that are legally enforceable by law
warranty
written guarantee that all information provided is true and accurate
policy
written instrument in which a contract of insurance is set forth
unilateral
a contract in which only one party is legally bound to do anything.
aleatory
a contract in which unequal amounts or values are exchanged.
4 components of a contract
agreement, competent parties, legal purpose, consideration
unintentional tort
also known as negligence, tort resulting from lack of proper care
fines of penal code section 550
not to exceed 150 or double the value of the fraud
penal code section 550
it is illegal to intentionally: conspire to file a false or fraudulent claim, making more than one claim for a single loss, and creating paperwork or making an oral statement to support an illegal claim
concealment
legal term for the intentional withholding of information of a material fact which is crucial in making a decision.
tort
private, civil, non-contractual wrong for which a remedy through legal action may be sought.
consideration
the binding force of the contract, something of value that each party gives to the other.