The basic principles of insurance contract - the principle of utmost good faith

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					The basic principles of insurance contract - the principle of utmost good faith
First, the principle of utmost good faith
(A) the concept of the principle of utmost good faith
   Integrity, that is honest and trustworthy, and this is the way the world through
legislation on civil and commercial activities, the basic requirements.
   Insurance contract is the contract of utmost good faith. As the special nature of the
insurance operations, the principle of good faith fulfillment of the requirements were
more stringent, to require insurers to carry out the parties entering into insurance
contracts with the Zhenggeguocheng Zhong Dounengzuodao maximize the honesty
and trustworthiness. Voluntarily insured or the insurer requests to each other fully and
accurately informed about the important subject of fact; require the insurer to the
insured truthfully shows the insurance contract terms of content.
(B) the basic requirements of good faith
   The basic requirements of good faith is on the insurance contracts and relationships
at the request of the parties, specifically refers to the insurer, the insured or the
insurer's requirements.
1, in good faith on the insurer's requirements.
   Insurance contract is the contract of utmost good faith. Terms of General Insurance
prepared in advance by the insurer or by the management agency, has strong
professional and technical, requiring insurers adhere to the principle of utmost good
faith based on the main elements of the insurance contract, inform the insured or the
insurer .
2, in good faith to the insured or the insurer's requirements.
   Faith originated in marine insurance. As the insurer when the insured policyholder,
is often difficult to carry out field survey on the subject, assessment, therefore, the
insured or the insurer requests the insured whether to accept, or what kind of
conditions are covered only to the insured or other subject matter insured on the basis
of the statement, that in the course of the insurer in fact insured to give the insured or
the insurer's largest faith. China's "Insurance
Law" provides that: the insurer "can the subject of insurance,
the insured person or to inquire about the situation, the insured should be truthfully
(C) the basic content of the principle of utmost good faith
   The basic content of the principle of utmost good faith, including accurately
informed, guarantee, Waiver and estoppel. Truthfully inform and guarantee is the
insured and the insurer's common constraints; Waiver and estoppel is
binding on the insurer.
1, accurately inform
   Informed that the contract is entered into and performance of a party in the course
of the insurance contract, the parties to the contract, the subject of the insurance
situation, made to each other faithfully oral or written statements. The main parties to
the contract for the insured and the insurer.
(1) the insured or the insurer should inform the content.
1, the insured is obliged to know all the important information related to the subject of
this insurer. Important situation is that can affect whether insurers to cover the
situation or to determine rates. Such as life insurance, the insured person's
age, gender, health status, past medical history, family genetic history, occupation,
living environment, hobbies, etc.; property insurance, the subject of value, quality and
risk status are important conditions.
2, the insurance contract, when the insurance increase the risk of the subject, it should
promptly notify the insurer.
3, the insurance after the accident, shall promptly notify the insurer.
4, duplicate insurance should notify the insurer.
5, the insurance interests of the subject, put to such transfer occurs, it should promptly
notify the insurer.
(2) the insurer shall inform the content.
1, enters into an insurance contract, should take the initiative to the policyholder of
the contract terms and liability exemption provisions.
2, after the contract conditions are met, as well as insurance after the accident, the
insurer shall faithfully perform the contract or compensation paid compensation
insurance obligations.
(3) the policyholder or insured person who contravenes this situation.
1, omitted. Insured due to negligence on certain matters were not reported, or
mistaken for unimportant and important facts omitted.
2, falsely accused. Insured due to negligence and false declaration.
3, hide. The insured should declare the intention to not knowing the importance of
reporting the facts.
4, fraud. Insured intentionally fabricated facts, false or not to correct the facts on the
important declaration, and a fraud attempt.
(4) Duty to Inform of legal significance.
1, to distinguish their motives are intentionally or unintentionally. Of the deliberate
actions more important than unintentional.
2, is an important distinction between matters of breach of facts, important facts of the
action is more important than non-important facts.
(5) Duty to Inform form.
1, infinite informed that the law or the insurer on the content of this provision is not
clear, the insured party to take the initiative to target the important facts about the
situation and truthfully inform the insurer.
2, asked to answer this, only the insured the insurer asked questions truthfully
informed, and asked the question is no need to inform the outside. Most countries are
now asked to answer by this method.
(6) the following cases, the insured or the insurer can not perform the obligations, or
increased risk of notification obligations:
1, affirmed the insurer or the insurance policy holders do not need to declare the
situation relating to the subject;
2, and reduce the risk of insurers cover the situation;
3, the insurer knew or should have known the fact that (situation);
4, does not affect the interests of the insurer's risk situation;
5, to fulfill a moral obligation to the subject of increased risk caused by the situation.
   Of course, the representation obligation or risk to increase notification obligations
are insured or the insurer has, or should know the facts is limited.
2, guarantee obligations
(1) that meaning.
   Assurance refers to the insurer or insured in the insurance contract the insured or
the insurer within the time limit in the insurance-specific matters commitment to the
act or omission of a security, or that the interests of the insured to bear on the subject
and a prerequisite for insurance (required to fulfill certain obligations to the insured).
?(2) that category.
1, Civil ensure: that the express provision in the insurance contract guarantee.
   Agreement to ensure that the correct security something now, and continue right to
the future (upon termination of insurance). If the insured warehouse fire fighting
equipment to ensure good and effective, and continue to the insurance termination.
   Determined to ensure that the guarantee of something right now (when properly
insured), but without a clear future. If the current recognition between the insured and
the insured is for employment and employment relationship, but future uncertain.
2, implied warranties: mainly seen in the marine insurance, refers to insurance
policies though not expressly, but in accordance with the law and practice, there must
be commitment to the insurance contract guarantees.
Implied warranties and express warranty has the same legal effect as both inconsistent
with the express warranty shall prevail.
(3) ensure that the legal significance.
   Insurance activities, either express or implied, to ensure issues are important facts,
which the insured or the insurer either intentionally or unintentionally violate the
warranty, even before the losses were up, insurers can The grounds to terminate the
insurance contract, does not assume responsibility for compensation or payments, and
except life insurance, the insurers generally do not refund the premium. But for
breach of warranty occurred before the accident, the damage insurance, still bear the
responsibility for compensation or payments.
   It should be noted that, in the practical business insurance, the policyholder or the
insured person after the breach of warranty, whether by increasing premiums to
continue coverage, or cancel the contract often according to specific circumstances.
3, Waiver and estoppel
   Abstention, is the insurer in the insurance contract can give up some rights
advocates. Estoppel means that the insurer has to give up certain rights, shall not
again in future insured claims such a right. Such as marine insurance, the insurer
known the insured vessel to change course or cancel the contract without objection, it
is deemed abandoned the claim the insurer the right to change the channel for ships
and the occurrence of insured losses caused by the accident insurance people still bear
the liability.
   It should be noted that the "waiver and estoppel" in life, there
is a special time for the requirement that the insurer can only be a certain time
(usually two years) to the insured person who contravenes the principle of good faith
(this is not false or concealed etc.) grounds to terminate the contract, or as a waiver of
this right shall not terminate the contract, the contract remain in force.