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I assume that you are asking when the policy goes into effect. The answer depends upon the nature of the authority that the insurer has given the agent.
Many agents have "binding authority", which means that once the application is completed and the first premium paid, insurance goes into effect for a stated period of time. The agent will give you a receipt, called a "binder" which is essentially a temporary policy of insurance. In the case of auto insurance, assuming that the breadth of the coverage satisfies the law, you may generally use it to prove compliance with financial responsibility laws.
If the agent does not have binding authority, such as in the case of many life/health agents, the coverage does not go into effect until the risk has gone through a process called "underwriting". This is a process done internally by the insurer to ensure that you (the risk) meets its underwriting criteria.
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Why Life insurance contract is not a contract of indemnity?
is fire insurance or medi claim (health ins) or motor insurance or life insurance which of them is a contract of indemnity
Who is the principal in a life insurance contract?
The Insured of the policy is obviously the Principal in a life insurance contract.
How long before you are vested for life insurance?
Your life insurance policy would pay out immediately after ratifying the contract
What is the contract between National Insurance and David called?
policy
What is the purpose of insurance?
An insurance policy is a contract of Indemnity. It is a means of transferring risk of financial loss and or financial liability to another party, Namely the insurance company.
When is a contract perfected?
When two or more persons agree to the terms and conditions, put forth by the proposer and the same has been accepted in the same manner, then only contract perfected.
How are contracts perfected?
Perfection or birth of the contract takes place when the parties agree upon the essential elements of the contract.
Why Life insurance contract is not a contract of indemnity?
is fire insurance or medi claim (health ins) or motor insurance or life insurance which of them is a contract of indemnity
Why is an insurance contract needed?
An insurance contract is needed to specify the exact terms of the insurance.
How far contract of insurance are contract of indemnity?
all types of insurance is not a contract of indemnity because life insurance cannot b measured in terms of money , that is why it is not a contract of indemnity
Can your car get repossessed for not having the right insurance?
If insurance is required by your contract then the 'wrong' insurance might be a contract violation allowing repossession. You have to read your contract.
Who are the parties that enter a auto insurance policy contract?
The Insurer and the Insured are parties to an insurance contract.
What are the essential elements of a contract of insurance?
there are four elements of insurance contract... offer,acceptance,consideration...
Who is the principal in a life insurance contract?
The Insured of the policy is obviously the Principal in a life insurance contract.
What type of contract do you need to get money for your damaged property?
Insurance contract with an insurance company Indemnity bond
Why is important to have utmost good faith in insurance contract unlike other commercial contract?
as it differentiate insurance contract from other commercial contract so it is important.A contract of insurance is a contract of Utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts id embodied in this important principle which applied to all forms of insurance.
Is A property or liability insurance policy a business or liability contract?
A property is not a contract or a business. A liability insurance policy is a kind of contract but not a business. the answer is b...
