Study Of The Fatcors On Vadility Of Insurance Contract

There are all kinds of disasters in our daily life, which are unavoidable and uncontrollable to human beings. Therefore, people creatively introduce a system---insurance, to reduce the risk and loss occurred. In indemnity insurance, the insurer is obligated, upon the occurrence of the insured event, to indemnify the policyholder for the pecuniary loss caused thereby, as provided in the contract. In life insurance and accident insurance, as well as in other kinds of insurance of persons, the insurer is obligated, upon the occurrence of the insured event, to pay the agreed amount of capital or annuity, or to perform otherwise as agreed. On the other hand, the policyholder shall pay the agreed premium. First of all, a valid and lawful insurance contract between the parties is the key premise that the assured could be entitled to enjoy the protection of insurance. The dissertation aims to probe into those factors, which may have affects on the validity of insurance contract. Therefore, the writer divided the dissertation body into five parts, which exert affect on the validity of the insurance contract from different ways. Any contract is the parties' meeting in mind. In the ordinary course, if the insured's offer is accepted by the insurer, the contract comes into being between them. There are five basic parties involved in insurance contract: such as the insurer, the insured, the assured, the beneficiary, and the insurance agent or broker. Any party may affect the contract's validity. In China, only those approved corporations could be a legal insurer besides its competent legal capacity. Otherwise, the contract entered by those non-approved corporations, organizations, and fraternal benefit societies is void. Of course, the insured must be a competent legal capacity person. People who are sane or minors are allowed to break his promise. More worthy to be mentioned is that the insured must have insurable interest in the insurance subject matter. The requirement of insurable interest forthe validity of a contract of insurance has for many years been accepted as insurance Law and is fundamental to the contract of insurance. An insurable interest is the financial interest a person has in the subject matter that is being insured. In short-term assurance this is usually the financial interest that the person has in an asset, like a motor vehicle. If the vehicle had to be stolen, the insured would suffer a financial loss. In the case of long-term insurance or life assurance, the insurable interest is in a person's life, health or other well-being. In the case of a life policy the insurable interest is only required at the time the policy is effected. The continued existence of an insurable interest is not required, and there is no requirement that an interest must exist at the death of the life assured. In all other cases an insured must have an insurable interest in the life of any other person before an enforceable insurance contract can exist. The reason for this is one of public policy. People should be discouraged from gambling or wagering on lives in which they have no interest, as this is a practice that could serve as an inducement to murder.As a kind of special contract, the premium will influence the validity of the contract. If the first or a single premium is not paid in time, the insurer has the right, as long as payment has not been made, to rescind the contract. Failure to pursue the claim for the premium by court action within three months from the due date shall be deemed a rescission. If the premium has not been paid by the time of the occurrence of the insured event, the insurer shall be relieved from its obligation. If a subsequent premium is not paid in time, the insurer may, in writing and at the policyholder's expense, set a time of at least two weeks for the policyholder to pay; a facsimile signature shall suffice. In the notice, the legal consequences resulting from the expiration of the period must be indicated. If the insured event occurs after the expiration of the time and...