Insurance Contractual Right To Terminate The Legal Analysis

The humity must face various danger which comes from the nature or societyin any time. In a sense, the humanity resists the various risk unceasingly in historiccourse of the human society. Insurance is the system which the human beingcreates in order to resist the danger.Insurance gather together a lot of people tomake up a group.When a member of the group has an accident, the member willbe get some conpensations. But as the insurance industry of China is still in itsintial stages, it lacks standardization.The insurer often misuses the right to rescinedthe contract to shirk its responsibility of compensation by taking advantage ofeconomic status,rich insurance knowledge and the adhesion contract.The existenceof such situation no doubt will add the uncertainty which the insured get thecompensation, shatter the hope of the insured that "no worry with an insurance",failto attain the expected goal of social security and thus increase social disputs.Andthat situation will lower the reliablity of insurance and consequently hinder thedevelopment of insurannce industry of China.In order to standardize the action ofthe insurer when exercising their right to rescind a contract, this dissertation tries tomake a far-reached and systemic study on the surer's right to rescind acontract, with the purpose of urging the acadmic to think much of this problem andproviding theoretic reference for practice and law.The dissertation consists of 5parts.The first part introduces the basic theories of the surer's right to rescind acontract.It includes the theorical resourse,the concept,the characteristics and theprinciple of the surer's right to rescind a contract. The principle of the contractlaw requires the two contracting parties must act according to the contract once thecontract take an effect.In practice, a contract often isn't be fulfilled because ofvarious aspects reasons. The expected purposes of the two contracting parties willfail.By implementating it, the right to rescind a contract will help the party get ridof the contract that won't realize his the expected purpose.The second part inquires into implementation of the surer's right to rescind acontract.There are two kinds of implementation of the the surer's right to rescinda contract:legal right to rescind a contract and contractual right to rescind a contract. The dissertation has more-detailed analysis the implementation of the the surer'sright to rescind a contract from the two aspects.And some comment about thedrawbacks of the law concerned are given.The third part puts the emphasis on the effect of implementing or terminatingthe the surer's right to rescind a contract.By analysing the provisions of theinsurance law, we can see the character of the the effect of implementing the thesurer's right to rescind a contract.That is life insurance and property insurancehave different effects; the effect are different when the insurer is intentional orfaulty.Waiver and estoppel source from the equitable principle:equitable doctrine.Waiver and estoppel are the systems which prevent the insurer to misuse its right torescind a contract.The insurance act of our country doesn't provid Waiver andestoppel. The dissertation studies Waiver and estoppel by inquiring Waiver andestoppel provided in English law and American law.Basd on above studies,The fourth part put forward some constructivesuggestions regarding to the surer's right to rescind a contract.In order to prevent the insurer to misuse the right to rescind a contract andprotect the legal interest of the insured,the dissertation probes into the surer'sright to rescind a contract.So that the insurance law will be more effective inpractice and will accelerate the development of national insurance industry.