Personal Contract
Definition of "Personal contract"
Agreement concerning an insured individual, not the insured's property. A property and casualty insurance contract cannot be assigned, since it follows the insured, not the property. For example, a HOMEOWNERS INSURANCE POLICY cannot be transferred with the home upon its sale because the insured no longer has an insurable interest (expectation of monetary loss) in the home. But a LIFE INSURANCE contract can be assigned (for example, to secure a line of credit for a business). Banks use the American Bankers Form for the assignment of life insurance policies pledged as security for a loan
Popular Insurance Terms
Guarantee by a reinsurance company that payment for losses incurred by a third party will be made even though that third party has no contractual arrangement with the reinsurance company. ...
Situation wherein the agent's conduct causes a client or prospective insured reasonably to believe that the agent has the authority to sell an insurance policy and contract on behalf of the ...
Trade association whose objective is to further the interests of its membership, as well as to inform the public on the role of its members. ...
In property insurance contracts, provision that states that the violation of one or more contract condition^) at a particular location that is insured will not void coverage at other ...
Model state law that stipulates minimum benefits that must be contained in the policy provisions, restrictions on policy illustrations, minimum reserve requirements, and minimum ...
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Trusts in which individuals manage their own assets and only if a predetermined event occurs, such as incapacity, will another party take over the management of these assets. Upon ...
Contract providing income payments beginning when the named contingency occurs. For example, upon the death of one spouse (the contingency), a surviving spouse will begin to receive monthly ...
Insurance salesperson who markets and services policies in one or more states and holds a supervisory position. ...
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