Reference no: EM131237387

Assignment Chapters 9 and 10

1. List the four requirements that must be met to form a valid insurance contract.

2. a. Explain the meaning of an insurable interest and how does it help enforce indemnity?

b. How does the requirement of insurable interest in property insurance differ from the insurable interest in life insurance?

3. Provide an example of each of the following legal doctrines as they would relate to life insurance:

a. Misrepresentation
b. Concealment
c. Warranty

4. Insurance contracts have certain legal characteristics that distinguish them from other contracts. Explain the following legal characteristics of insurance contracts.

a. Aleatory contract
b. Unilateral contract
c. Conditional contract
d. Personal contract
e. Contract of adhesion

5. a. Why is the Principle of Indemnity important to the success of insurance?

b. How does the concept of subrogation support the principle of indemnity? Please provide an example of the use of subrogation in automobile insurance.

6. Johnathon owns a laptop computer that was stolen. The laptop cost $1000 when it was purchased five years ago. A similar laptop computer today can be purchased for $500. Assuming that the laptop was 50 percent depreciated at the time the theft occurred, what is the actual cash value of the loss?

7. A drunk driver ran a red light and smashed into Lisa's car. The cost to repair the car is $8000. She has collision insurance on her car with a $500 deductible.

a. Can Karen collect from both the negligent driver's insurer and her own insurer? Explain your answer.

b. Explain how subrogation supports the principle of indemnity.

Attachment:- Chapter_9_and_10_Lecture_Notes.rar