Saving You Money For Life

There are a few components that need to be apart of every insurance contract. Ensure validity by making sure that the following are apart of each of your insurance contract experiences.

Offer and Acceptance. After you’ve filled out the forms sent to you by the company (your offer), the insurance provider either accepts your offer or doesn’t. Once they cash your first check or sign the forms, you have an official acceptance.

Consideration. Consideration is another word for the premium that you pay your provider. It also refers to the money paid to you by your provider for a claim you make. Both parties in the contract offer consideration making it an exchange of equal value and therefore a valid contract.

Legal Capacity. Are you over the age of 18? Are you sane and of right mind? If your answer to either of these questions is no then you do not have the legal capacity to take part in a contract.

This goes both ways, however, as your insurance provider is bound to the legal capacity rule in that they must be in compliance with all rules and regulations of your state.

Legal Purpose. This is inherent to an insurance contract as insurance is legal – as long as the company is legally up to code and you’re of legal age – but your contract isn’t valid if it is agreement to illegal activities.

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