Requirements of the insurance contract
We have all signed one of these contracts. Even we have signed without really knowing what he said. It is therefore important lessons and requirements of the insurance contract.
The basic legal classification of certain difference:
- Damage Insurance.
- Insurance people.
Insurance against damage in turn can be:
- Fire insurance.
- Theft insurance.
- Security of land transport.
- Loss of income insurance.
- Credit insurance.
- Liability insurance.
- Legal expenses insurance.
Some submanifolds are the rental insurance to protect a rented property, multi-risk home insurance and agricultural insurance to protect against the loss of a crop.
The insurance may be:
- Life insurance.
- Accident insurance.
- Health insurance and health care.
The variety is wide and you can even negotiate contracts not covered by the insurance. Less common examples are:
- Securing a body part. Legs, chest, nose, etc.
- Secure a draw. If winning is paid out the insurance and if the insurer has won out.
- Auto Insurance lasting one day. For example older vehicles that drive one or a few days a year.
- Real estate title insurance. Also called title insurance is a type of insurance created in the United States to protect all kinds of property purchase or lien on property. According to Carlos Odriozola author of the first book on the subject written in Castilian language “Real Estate Title Insurance”, title insurance is an indemnity agreement, as collateral for a major operation, which may be the sale or mortgage, insurance It is obliged to indemnify the insured in the event that it had any loss caused by actions brought by a third party.
In some case it is required by law to have insurance such as:
- Compulsory insurance of vehicles, which is basic insurance wider bouquet of car insurance
- Insurance dogs considered dangerous.
- Hunting insurance.
- Property insurance or surety, to be hired by the developer of a building.
In these cases, the authorities understand that the danger of certain activities is sufficient to force the effected who purchase insurance to protect third parties for damages that may be caused.
Other contracts may come bound by a previous contract. It is very common in a mortgage have to ensure mortgaged to the creditor well.
Requirements of the insurance contracts
Requirements of the insurance contract is to be composed of some essentials that if one did not exist, the contract would be null and void and therefore could not have its appropriate effects.
These elements are:
- Consent of the parties.
- Cause: the desire to protect against risk. So if at the time of contracted insurance risk does not exist or it has already been performed, the incident has occurred, the contract would be null because there would be no cause.
For example, we cannot subscribe to a fire insurance on a house that has already been burned or accident insurance on a person who is at that time low by accident.
- Purpose: the interest you have in that the incident did not occur to have an economic relationship with the insured good.
- Insurable interest: the interest of the person to keep property and is to be legitimate, it does not go against the law and it is possible to estimate in money.
So, if there were no economic relationship between the insured and the insured object, the contract would be null.
For example, if Mr. Vazquez, Madrid trader requests a fire insurance for trade Mr. Lopez also from Madrid, but there is no relationship between Mr. Vasquez and Mr. Lopez or among their businesses. Therefore, there would be no possibility of signing the policy of fire, because there is no object of the insurance contract.
Given this interest, a person can insure your life or someone else for the amount it considers appropriate.
- Consent of the parties: the intention of the parties to fulfill the agreement in a contract of insurance.
To give consent is necessary to have the capacity to contract, meaning that capacity the aptitude or ability of persons to enter into contracts that generate rights or obligations, and to modify or extinguish.
These elements are:
- The policyholder of insurance is a natural or legal person who acknowledges and supports requirements of the insurance contract with the insurer, assuming the obligations arising from the contract; in short, it is the one who signs the policy and pays the premium. It is the buyer of insurance.
- The insured is the person who is at risk in his person or property, which is covered by Requirements of the insurance contract.
- The beneficiary is the person designated to receive the benefit of requirements of the insurance contract if the loss occurs.
The beneficiary is appointed by the policyholder and may change as often as it sees fit without consent of the insured or the insurer, by writing to it or will.
These three figures may not coincide in one person and we can establish the following possibilities of coincidence:
1) Policyholder, insured and beneficiary the same person
2) Policyholder and insured and beneficiary alike different
3) Insured and beneficiary thereof and another policyholder
4) Policy holder and beneficiary is the same and different
5) Policyholder, insured and other beneficiaries.
The designation of beneficiaries in personal insurance and especially in the life insurance is of vital importance in receiving the benefit especially for the case of death by the tax implications that arise.