Term
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Definition
-Holds 3rd party at fault
-Control Moral Hazard
-Insurance premium rate for driver hit stays low. |
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Term
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Definition
>Insured can't stop insurer right to suborgate
>Insurer can't surbogate on their own insured
>Insured must be fully indemnified before suborgation takes place |
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Term
| II. Principle of Good Faith |
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Definition
-Insured are held to high standard of honesty
-Violation leads to void coverage or denied claim |
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Term
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Definition
| Statement made by applicant |
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Term
| What is misrepresentation? |
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Definition
False statement made by applicant
>Leads to denied claim.. etc.. |
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Term
| What is innocent misrepresentation? |
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Definition
-Lack of knowledge as a defense.. no defense by insured.
-Applicant speaks at own risk |
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Term
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Definition
-Failed to provide info to provider
-Material facts not revealed
-Volunteer material facts |
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Term
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Definition
| -Condition agreed to by insured to get insurance |
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Term
Warranties con't
What is condition of coverage? |
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Definition
| Insured grantees coverage is under insurance contract |
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Term
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Definition
| Leads to void contract, even if unintentional |
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