The Insurance Contract

In this chapter, the contract of insurance is explained. The differences existing between a non-life insurance contract and a life insurance contract are explored. The obligation foresees that an insurer undertakes a risk in return for consideration in the form of an insurance premium. An assured is obliged to the payment of the premium and for the truth and accuracy of the information given. In non-life insurance contract, the settlement of a claim is bound by an indemnity principle according to which the insurer will pay only if the loss occurs and to the precise extent this is suffered by the assured. In life insurance contract, the insurer will pay a lump sum or an annuity upon the occurring of an event tied to the life of the assured. The involved parties (insurer, policyholder, assured and beneficiary) are explained. Contractual documentation foresees some standard documents, such as proposal form, acceptance, policy, scheduled, endorsement, certificate of insurance (if required Health History Questionnaire (HHQ). In the end, the current developments in Europe are illustrated. The paragraphs describe the life product classification (PRIIPs, IBIPs, PRIPs) and the related new pre-contractual documents required (KID and IPID for non-life business).