Wisconsin Property and Casualty | 279 Questions and Answers(A+ Solution guide)

FAIR - Fair Access to Insurance Requirements Elements of a Legal Contract. L. O. A. C. - • Consideration • Legal Purpose • Offer • Acceptance • Competent Parties Consideration - Money and statements made on application Legal Purpose - Risk transfer doesn't violate the law Offer - Insured submits application and first month premium to insurer Insurer accepts or insurer declines the risk Counteroffer - Agrees to issue policy but with higher premium or restrictions/ exclusions Insured either accepts the conditions or withdraws their application Competent Parties - Competent• Legal age (usually 18) • Mentally sane• Sober Adhesion - Policy written by the insurance company Adhesion = glue Insured has no input If ambiguous, court will take the side of the insured Aleatory Contract - • Unequal value• Pay small premium and have a large claim, or pay premiums for many years without a claim representation - believed to be true misrepresentation - representation that is actually false. Material misrepresentation - information given that is not true and DOES affect the insurer's decision warranty - statement that is guaranteed to be true, and it may be relied on by the other party. If a warranty is not kept, there is a breach of warranty that voids the contract. Concealment - failure to disclose known facts Property insurance policies - Covers"mystuff" "Mystuff"=buildings(real property) and personal belongings First Part Loss Casualty Insurance - Casualty = Liability Always pays the other guy, never me Third party losses D. I. C. E. E. - ■ Declarations■ Insuring agreements■ Conditions■ Endorsements and additional supplementary coverages ■ Exclusions Declarations - who, what, when, where, and how much Insuring agreement(s) - promise to pay and perils covered