CONTRACT AND AGENCY

CONTRACT LAW

-An agreement, enforceable by law. 

-Insured agrees to pay a premium and insurer bides to T&C.

ESSENTIALS OF A VALID CONTRACT

-Offer & acceptance 

-Consideration 

Contract certainty: became essential to the London Market after challenges around coverage in the wake of the terrorist attacks on the World Trade Center in 2001. 

-Simple contract does not need to be evidenced in writing. 

UNCONDITIONAL ACCEPTANCE - straight forward

CONDITIONAL ACCEPTANCE - counter offer 

POSTAL ACCEPTANCE - when letter is POSTED

CONSIDERATION

-Each person's side of the bargain which supports the contract. 

-Payment of money is a common form of consideration.

CANCELLATIONS

-FCA April 2017: require insurers and intermediaries selling retail products to:

1. disclose the previous year's premium on renewal notices

2. inc text to encourage consumers to check their cover and shop around for the best deal 

3. identify customers who have renewed for consecutive times and give extra notice to shop around. 

INSURERS RIGHTS

-Most can cancel within 14 days 

POLICYHOLDER'S RIGHTS

-Most can cancel at any time, except for travel and baggage for less than a month. 

-Usually…