What are the duties of an insured and insurer?
What will be an ideal response?
The parties to an insurance contract are obligated to perform the duties imposed by the contract. The insured owes the following duties: 1. to pay the premiums stipulated by the policy, 2. to notify the insurer after the occurrence of an insured event within the time period stated in the policy or within a reasonable time, and 3 . to cooperate with the insurer in investigating claims made against the insurer.
The insurer owes two primary duties. First, the insurer owes a duty to defend the insured against any lawsuit or legal proceeding brought against the insured that involves a claim within the coverage of the insurance policy. Second, the insurer owes the duty to pay legitimate claims up to the policy limits. Insurers who wrongfully refuse to perform these duties are liable to the insured or a rightful beneficiary for damages.
You might also like to view...
The goal of knowledge management is to share knowledge in order to ______.
a. better manage diversity b. continuously improve products and processes c. ensure that goods are continuously produced d. respond to domestic competition
Which of the following describes the pull dynamic of distribution using digital media?
A. Zappos uses the Internet to sell products to consumers. B. KFC uses a blog to describe a new meal offering. C. A man is surfing on the Internet when a T-Mobile ad pops up. D. A woman uses her iPhone app to locate the nearest Starbucks. E. A coupon is sent to a shopper's mobile device.
Odell is a director of Price Rite, Inc. As a director, with respect to the corporation, Odell is
A. a fiduciary. B. a forum. C. a proxy. D. a quorum.
Debt service funds for term bonds would generally include sinking fund investments.
Answer the following statement true (T) or false (F)