ADM 4716 Lecture 7: Module 7 Special Contracts 3
31 Jul 2016
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Document Summary
Contract of utmost good faith required reading: pp. Casebook, p. 218, lachman estate v. norwich union life insurance (1998) Insurance is a form of contract and as such is covered by the regular rules of contract law. However, insurance also has special rules governing (i) the object of the insurance contract called an insurable interest (ii) offer and acceptance (iii) the requirement of good faith or disclosure, and (iv) the right of subrogation. Insurance allows one party, the insured, to transfer the risk of loss or the occurrence of an uncertain future event to another party, the insurer. In consideration for this advantage or benefit, the insured pays a monetary amount called a premium, to the insurer. The amount of the premium will increase with the likelihood of the loss or the risk assumed by the insurer. If the loss or the uncertain future event should occur, the insurer will compensate the beneficiary, the parties to whom the.
