Question

write the short notes on the components of an insurance contract about 125 words​

Answer 1

Elements of an Insurance Contract

There are many components of a contract and they will have different titles and names depending on the insurance and the service being provided; however, below is a list of what each section should contain and could be called.

Offer - This is where the insurer will offer a specific service, such as paying for your home and belongings in case of a flood.

Acceptance or Agreement - The agreement is the section where the insured agrees to the offer by paying a certain amount to secure the service.

Competent Parties and Components - This is the list of what is being insured, and caveats on what will not be insured. Much like a list of cars that are being insured and have been notated and paid for, while other non-listed vehicles will explicitly be uncovered.

Consideration - This is where the legal wording will come into play. All the lawful requirements needed to be met by both parties will be here, making them responsible for what they promise.