In property insurance, insurance is a personal contract, which means that the contract exists between the insured and the insurer. Strictly speaking, a property insurance contract does not insure the property, but insures the owner of the property against loss. The owner of the insured property will be compensated if the property is damaged or destroyed. Since the contract is personal, the insurance applicant must be acceptable to the insurer and meet certain insurance standards in terms of character, morality and credit. In contrast, a life insurance policy can be freely issued to anyone without the insurer`s consent, as the assignment usually does not alter the risk and increases the likelihood of death. For a contract to be enforceable, the promise(s) it contains must be supported by opposing promises. The consideration can be defined as the value given in exchange for the desired promises. In an insurance contract, the claimant provides consideration for the insurer`s performance promise. It also includes the application and the initial premium. For this reason, the offer and acceptance of an insurance contract is not complete until the insurer has received the application and the first premium. The counterparty clause also contains information such as the timing and amount of premium payments. Since a property insurance contract is a personal contract, it generally cannot be assigned to another party without the insurer`s consent.
If the property is sold to another person, the new owner may not be acceptable to the insurer. Therefore, the insurer`s consent is usually required before the insurance of the property can actually be transferred to another party. Since the general rule states that one cannot be compelled to enter into a contract against one`s will, the right of the insured to assign the policy is subject to the consent of the insurance company. Otherwise, the company could not be legally bound by a contract with a person to whom it would never have originally issued a policy and in which the nature of the risk changes significantly. For example, let`s say a car owner decided to sell his car to a 17-year-old boy. If it were possible to assign the insurance policy to the boy without the consent of the insurance company, the company would be obliged to deal with a person with whom it had not dealt. The assigned policy is only legally binding with the written consent of the insurance company. / Compare the provisions of articles 672, 673, 660 of the Commercial Code / Contracts can be unilateral or bilateral. In the case of a unilateral contract, only the tenderer has an obligation. In a bilateral agreement, both parties agree on an obligation. As a general rule, bilateral agreements include an equal obligation of the supplier and the target. In general, the main distinction between unilateral and bilateral treaties is a mutual obligation of both parties.
In insurance, the offer is usually initiated by the insurance applicant through the services of an insurance agent, who must have the authority to represent the insurance company by completing an insurance application. Sometimes the insurance application can be submitted directly to the insurance company through its website. How the offer is accepted depends on whether the insurance is property insurance, liability insurance or life insurance. In the case of property and liability insurance, the offer is the request for insurance and the payment of the 1st premium, or the promise to do so. In most personal insurance lines, the agent can accept the offer for the business and bind the company to the contract. A file is a fixed-term contract, which can be oral or written, and immediately binds the insurance company to the contract until it has the opportunity to review the application and issue a formal policy. Through the file, the insurance takes effect immediately. Most records are written and contain general information, such as the type and amount of insurance, the names of the parties, and the length of time the case came into effect. However, once a formal policy is issued, the policy conditions replace the folder. This is especially true for oral records, as once a written policy has been issued, the probation rule makes the written policy decisive in the event of a conflict between the oral agreement and the written agreement. .
