Recommendations – These are forms that are attached to the main insurance used to change the obligations or obligations of the policy. Often, the references are a condition of the insurer`s obligation to compensate the insured or to cover a certain type of loss. You can also change or remove the express clauses in the core of the insurance policy. This is the main method used by insurers to apply a specific policy to a particular policyholder. Excluded risks or causes of losses – For example, homeowner`s insurance may exclude flood damage. Insurance contracts can be concluded by mutual agreement – recalisation. The insured may terminate the contract by not paying the premium. If the insurance company has fraud thefts, it can ask a court to unilaterally revoke a contract. However, life insurance generally has an indisputable clause that prevents an insurer from terminating life insurance after a period of 1 or 2 years. The initial period gives the insurance company time to verify the facts in the notification and possibly revoke the contract if it detects fraud. However, at the end of this period, life insurance may be terminated by the company for a reason other than non-payment of the premium.

A following condition is a condition that must be met after an event requiring an act from the insurer. For example, if the insurance company intends to exercise its right of withdrawal and sue a third party because of the insured`s claim, the insurer may ask the insured to testify in court. Insurance contracts require certain things from the insured or require certain conditions, both before and after a loss, that the law sometimes classifies as conditions and conditions thereafter. If the insured does not comply with or comply with these obligations, the insurance company may be exempt from the obligation to pay the default claim. However, in most jurisdictions, a court will only relieve an insurer`s obligation to pay a claim if the offence is significant. Most non-insurance contracts are putative contracts, the amount of consideration granted by both parties is generally fairly equal. Therefore, a contract to purchase real estate generally requires a payment equal to its value. However, insurance contracts are aleatory contracts, because insurance only has to pay if certain events occur. If they do not happen, the company will never have to pay, even if the insured has been paying premiums for decades.

However, in the event of covered damages, the insurance company may have to pay much more than it has received in the premiums. Aleatory contracts are therefore distinguished by uneven counterparties. Not all insurance contracts are compensation contracts. Life insurance contracts and most personal accident insurance contracts are null and purpose contracts. You can buy $1 million in life insurance, but that doesn`t mean the value of your life is that amount in dollars. Since you cannot calculate the net worth of your life and set a price, no compensation contract applies. However, in recent years, insurers have increasingly modified standard forms in a company-specific manner or refused to change standard forms. For example, a review of household insurance revealed significant differences in the various provisions. [34] In some areas, such as directors` and officers` liability insurance[35] and personal insurance on the roof,[36] there is little industry-wide standardization.

Suppose, for example, that you do not know that your grandfather died of cancer, and therefore you did not reveal this essential fact in the family history questionnaire when you applied for life insurance; It`s an innocent secret. However, if you were aware of this essential fact and deliberately withheld it by the insurer, you are guilty of fraudulent non-disclosure.