In legal terms, "consideration" refers to something of value that is given by one party to another as part of a contract. In other words, each party must give something of value to the other party. This mutual exchange of consideration is what distinguishes a contract from a mere promise or gift.
When an item has a stated, agreed-upon value, it means that the value of the item has been fixed and agreed upon by both parties (usually the insured and the insurer) at the time the insurance policy is issued. The agreed-upon value does not fluctuate with changes in the current market value of the item.
The act must result in aggregate insured losses exceeding $5,000,000 across all insurers participating in the program. Individual insurers are also required to meet a deductible based on their direct earned premiums.
A golf cart used to play golf off the insured's premises would typically fall under the liability policy of a Homeowners Insurance (HO) policy. Homeowners Insurance often includes personal liability coverage, which provides protection for the policyholder if they are found legally responsible for bodily injury or property damage to others.
An inboard motor boat owned by the insured may be covered by the liability part of the homeowner's insurance policy in certain situations when it is stored on the insured's premises in a garage. However, it's important to note that the coverage provided by a homeowner's insurance policy can vary depending on the specific terms and conditions of the policy.
The ship-owner has a legal obligation and duty of care to maintain the ship in a state of seaworthiness before it sets sail. Failure to meet these obligations and maintain a ship's seaworthiness can lead to serious consequences, including accidents at sea, environmental pollution, and legal liabilities. In some cases, the ship-owner may be held legally responsible for damages and losses resulting from unseaworthiness.
A Liberalization Clause is a provision in an insurance policy stating that if the insurer broadens the coverage provided under the policy without requiring additional premium, the policy will automatically be updated to include the broader range. A Liberalization Clause aims to ensure that the policyholder benefits from any improvements or changes made by the insurer to the policy without incurring additional costs.
Vicarious liability is based on the principle that an employer benefits from the work and services provided by its employees and, therefore, should also bear the responsibility for any harm caused by those employees while acting on behalf of the employer. This doctrine is especially relevant in situations where the employee's actions are related to their job duties or where the employer has control over the employee's actions.
The Closing Statement is not typically considered a section in an insurance policy. An insurance policy usually consists of several sections that outline the terms and conditions of coverage, including the declarations page, insuring agreement, exclusions, conditions, and definitions. The Closing Statement, on the other hand, summarises the policy's critical information, such as the policyholder's name and address, the effective dates of coverage, the policy limits, and the premium amount. While it is an integral part of the policy, it is not typically considered a separate section.
The clause in property and casualty contracts states that if policy or endorsement forms are broadened, and no additional premium is required, then all existing similar policies or endorsements will be construed to include the broadened coverage, called the "Liberalization" clause.
The classification of a terrorist act can vary depending on the legal definitions and interpretations in different jurisdictions. However, some common elements that generally characterize a terrorist act is when it involves the use or threat of violence to achieve its intended goals. It may include acts such as bombings, shootings, hostage-taking, or other forms of physical harm.
Of all the essential parts of an insurance policy, the Declarations Page is generally considered the most informative. The Declarations Page is typically located at the beginning of the procedure and provides essential information about the policyholder, the insured property or individuals, and the coverage provided under the policy.
A public adjuster is a licensed professional a policyholder hires to represent their interests in an insurance claim. The public adjuster works on behalf of the policyholder to assess the damages, negotiate with the insurance company, and ensure that the policyholder receives a fair settlement.
A declaratory judgment is a legal judgment or decision issued by a court to resolve legal uncertainty or controversy surrounding a particular claim or legal issue. It allows parties involved in a dispute to seek clarity on their rights and responsibilities without the need for an ongoing legal dispute or imminent threat of legal action.
The State Department of Insurance (sometimes known as the State Insurance Commissioner or Superintendent of Insurance) in each state in the United States is the primary regulatory body for the insurance sector. Each state has a Department of Insurance that oversees insurance providers and implements insurance regulations within its borders. The Department of Insurance oversees the solvency of insurance companies, establishes insurance regulations, and protects consumers. Additionally, the National Association of Insurance Commissioners (NAIC) is a voluntary association of state insurance regulators that works to standardize insurance practices nationwide and coordinate insurance regulation.
In aleatory contracts, the parties may have different expectations regarding the outcomes of the chance occurrence, and the values they put at risk may vary significantly. Common examples of aleatory contracts include insurance contracts, gambling agreements, and certain types of financial derivatives.
