Asked by: Gancho Talitskikhpersonal finance life insurance
What is legal purpose in life insurance?
Last Updated: 22nd January, 2020
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Accordingly, what does legal purpose mean?
legal purpose. Essential element of an agreement in contract law whereby an agreement is legal and enforceable only if it complies with the law of the land and public policy. Any agreement entered into for an illegal purpose is not legally binding.
Secondly, why insurance is a legal contract? A contract is an agreement enforceable by law. It is the means by which one or more parties bind themselves to certain promises. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. In exchange, the policyowner pays premiums.
In this regard, what is the purpose of a legal document?
1. legal document - (law) a document that states some contractual relationship or grants some right. legal instrument, official document, instrument. document, papers, written document - writing that provides information (especially information of an official nature)
What are the four elements of a legal insurance contract?
Elements of an Insurance Contract
- The elements of a general contract: offer and acceptance. consideration. legal capacity. legal purpose.
- The elements of a special contract in relation to insurance: indemnity. insurable interest. utmost good faith. subrogation. assignment and nomination. warranties. proximate cause. return of premium.