contracts

All parties must have the necessary capacity to enter into the contract

Insurance contracts can't be written to cover an illegal activity or immoral purposes

Applicant completes an application for coverage and the insurance company eithe raccepts it and returns a policy or binder, or makes a counter-offer

Something that has value in the eyes of the law in which a promisee receives something in return for a promise i.e. paying premiums so the insurance company will cover future loss

Payment will only begin if a loss occurs

Insured must accept the insurance company's policy as it is written

Both sides must perform certain acts to make the contract legally enforceable

Promises action in the event of a future occurrence

Both parties bargain in good faith

Insurance contract is bound to the insurable interest of the insured i.e. if insured property is sold, policy doesn't transfer to new owner

Contract must restore the insured to the financial position previously held before the loss

Pays stated amount in the event of a claim

Pays only the amount of the loss

Only the insurance company is legally bound to perform its part of the agreement

An incorrect statement made by the insured that may void coverage

Untrue statements made by the insured that may void coverage

Failure of the insured to reveal relevent facts known to the insured when applying for insurance that may void coverage

intentional act designed to deceive and induce another party to part with something of value

Something that becomes part of the contract and is a statement that is considered to be a guarantee

Policies include coverage that an average person would reasonably expect it to include

Voluntary or intentional relinquishment of a known right. Expressed waivers are purposefully given up, implied waivers may be the result of some kind of negligence

Someone intentionally or unintentionally creates the impression that a certain fact exists and another person relies on that information and is damaged as a result. Guilty party may be legally prohibited (estopped) from asserting that fact