The document outlines various legal considerations related to life insurance contracts. It discusses requirements for forming valid contracts such as having consent between capable parties, lawful objectives, and consideration. Specific issues covered include insurable interest requirements, stranger-owned life insurance restrictions, consent and how it can be impacted by factors like duress or mistake. Grounds for rescinding contracts such as fraud, misrepresentation and materiality are also summarized. The document appears to be presentation materials for a seminar on life insurance legal issues.
The document discusses the essential elements of a valid contract under Indian law, focusing on the requirement of free consent. It defines key terms including consent, coercion, undue influence, misrepresentation, and mistake. For each term, it provides the legal definition from the Indian Contract Act and illustrations of how those concepts apply in assessing whether a contract is voidable due to a lack of free consent. Overall, the document outlines how lack of free consent due to coercion, undue influence, fraud, misrepresentation or mistake can potentially invalidate a contract.
The document discusses various aspects of consent and free consent as it relates to contracts under Indian law. It defines consent, free consent, and the effects of absence of consent and free consent. It also defines and discusses coercion, undue influence, fraud, misrepresentation, and mistake in the context of vitiating free consent in contracts. Specifically, it provides definitions from the Indian Contract Act, elements that constitute each concept, presumptions in certain cases, and effects on contracts, such as making them void or voidable.
A contract of insurance differs from a wagering contract in several key ways:
1. A contract of insurance requires the holder to have an insurable interest, meaning they will suffer damage if the insured event occurs, while a wagering contract does not require any interest in the outcome.
2. In a contract of insurance, both parties have an interest in the subject matter, while in a wagering contract neither party has any interest in whether the event happens or not.
3. Contracts of insurance are intended to indemnify against loss or risk, while wagering contracts simply pay a fixed amount regardless of any loss or damage from the event.
Free consent requires that a party's willingness to enter a contract is not caused by coercion, undue influence, fraud, misrepresentation, or mistake. Coercion involves threats to compel someone to act. Undue influence occurs when one party has power over the other due to status or relationships. Fraud involves intentional misstatements of fact to induce someone to act. Misrepresentation is a false statement of material fact that affects a party's decision. Mistakes involve erroneous beliefs about facts when contracting. Free consent ensures parties enter contracts voluntarily without improper external pressures affecting their decisions.
Free consent is essential for a valid contract. Consent is not free when obtained through coercion, undue influence, fraud, misrepresentation, or mistake. Coercion involves threats to compel consent. Undue influence involves exploiting power imbalances. Fraud involves intentional deception. Misrepresentation involves unintentional false statements. Mistakes void a contract if both parties are mistaken about an essential fact or one party exploits the other's unilateral mistake about a fundamental issue. Consent obtained without free will can void a contract.
The document discusses the elements required for free consent in contract law. It explains that consent must not be caused by coercion, undue influence, misrepresentation, fraud, or mistake for it to be considered free. It defines each of these elements and provides examples to illustrate when consent would not be free due to these factors. The document also discusses the implications, such as contracts being voidable, when free consent is compromised.
This document outlines the essential requisites for forming valid contracts under Philippine law. It discusses the key elements needed for consent between contracting parties, including things like offer and acceptance, as well as circumstances that can invalidate consent such as mistakes, violence, intimidation, undue influence or fraud. It also defines concepts like simulation of contracts, and notes that absolutely simulated contracts are void while relatively simulated contracts can be valid depending on certain conditions.
This document discusses the concepts of free consent, coercion, undue influence and fraud under Indian contract law.
It defines free consent as agreement between two parties on the same terms without coercion, undue influence, fraud or mistake. Consent is considered freely given unless it is caused by coercion, undue influence, fraud, misrepresentation or mistake. Coercion involves threatening unlawful acts while undue influence involves improperly exploiting a position of power over another. The effect is that agreements made under coercion or undue influence are voidable. Fraud involves intentional misrepresentation or concealment with the aim of deceiving another party. Contracts obtained through fraud are also voidable.
The document discusses the essential elements of a valid contract under Indian law, focusing on the requirement of free consent. It defines key terms including consent, coercion, undue influence, misrepresentation, and mistake. For each term, it provides the legal definition from the Indian Contract Act and illustrations of how those concepts apply in assessing whether a contract is voidable due to a lack of free consent. Overall, the document outlines how lack of free consent due to coercion, undue influence, fraud, misrepresentation or mistake can potentially invalidate a contract.
The document discusses various aspects of consent and free consent as it relates to contracts under Indian law. It defines consent, free consent, and the effects of absence of consent and free consent. It also defines and discusses coercion, undue influence, fraud, misrepresentation, and mistake in the context of vitiating free consent in contracts. Specifically, it provides definitions from the Indian Contract Act, elements that constitute each concept, presumptions in certain cases, and effects on contracts, such as making them void or voidable.
A contract of insurance differs from a wagering contract in several key ways:
1. A contract of insurance requires the holder to have an insurable interest, meaning they will suffer damage if the insured event occurs, while a wagering contract does not require any interest in the outcome.
2. In a contract of insurance, both parties have an interest in the subject matter, while in a wagering contract neither party has any interest in whether the event happens or not.
3. Contracts of insurance are intended to indemnify against loss or risk, while wagering contracts simply pay a fixed amount regardless of any loss or damage from the event.
Free consent requires that a party's willingness to enter a contract is not caused by coercion, undue influence, fraud, misrepresentation, or mistake. Coercion involves threats to compel someone to act. Undue influence occurs when one party has power over the other due to status or relationships. Fraud involves intentional misstatements of fact to induce someone to act. Misrepresentation is a false statement of material fact that affects a party's decision. Mistakes involve erroneous beliefs about facts when contracting. Free consent ensures parties enter contracts voluntarily without improper external pressures affecting their decisions.
Free consent is essential for a valid contract. Consent is not free when obtained through coercion, undue influence, fraud, misrepresentation, or mistake. Coercion involves threats to compel consent. Undue influence involves exploiting power imbalances. Fraud involves intentional deception. Misrepresentation involves unintentional false statements. Mistakes void a contract if both parties are mistaken about an essential fact or one party exploits the other's unilateral mistake about a fundamental issue. Consent obtained without free will can void a contract.
The document discusses the elements required for free consent in contract law. It explains that consent must not be caused by coercion, undue influence, misrepresentation, fraud, or mistake for it to be considered free. It defines each of these elements and provides examples to illustrate when consent would not be free due to these factors. The document also discusses the implications, such as contracts being voidable, when free consent is compromised.
This document outlines the essential requisites for forming valid contracts under Philippine law. It discusses the key elements needed for consent between contracting parties, including things like offer and acceptance, as well as circumstances that can invalidate consent such as mistakes, violence, intimidation, undue influence or fraud. It also defines concepts like simulation of contracts, and notes that absolutely simulated contracts are void while relatively simulated contracts can be valid depending on certain conditions.
This document discusses the concepts of free consent, coercion, undue influence and fraud under Indian contract law.
It defines free consent as agreement between two parties on the same terms without coercion, undue influence, fraud or mistake. Consent is considered freely given unless it is caused by coercion, undue influence, fraud, misrepresentation or mistake. Coercion involves threatening unlawful acts while undue influence involves improperly exploiting a position of power over another. The effect is that agreements made under coercion or undue influence are voidable. Fraud involves intentional misrepresentation or concealment with the aim of deceiving another party. Contracts obtained through fraud are also voidable.
Civil code of the philippines.book iv.title ii.contracts.art.1305 1308Kristine Lungay
This document summarizes key parts of the Civil Code of the Philippines relating to contracts. It discusses the definition of a contract, characteristics of contracts such as their relativity and consensuality. It also categorizes different types of contracts based on aspects like name, perfection, cause, and obligatory force. The document outlines rules regarding stipulations in contracts, mutuality, determination of performance by third parties, effects on third persons, protection of creditors, inducement of breach, and requisites for a valid contract. It was prepared by Kristine N. Lungay as part of a summary of Articles 1305 to 1318 of the Civil Code pertaining to contracts.
This document summarizes the law around tracing trust assets when misappropriated by a trustee. It discusses the differences between tracing in common law and equity. In common law, tracing is allowed if the property has not changed form, but if it has, only damages are available. In equity, tracing is allowed even if the property has changed form or been mixed with other assets. There are also specific rules discussed around tracing mixed assets, between multiple trusts, in bank accounts, and exceptions where tracing is not available such as against a bona fide purchaser or when the property can no longer be identified.
This document outlines the essential requisites of contracts under Philippine law, including consent, parties' capacity to contract, offer and acceptance, cause, and object. It discusses the rules regarding consent, such as the definition of consent and when it is vitiated by mistake, violence, intimidation, undue influence or fraud. It also covers offer and acceptance, including the requirements for a valid offer and acceptance. Additionally, it defines the concepts of cause and object of a contract and the relevant requisites.
T1, 2021 business law lecture week 5 - law of torts - negligence 1markmagner
The document discusses the key elements of negligence claims under tort law. It begins by defining a tort and distinguishing torts from contracts and criminal law. It then outlines the four elements needed to prove negligence: (1) a duty of care owed by the defendant; (2) a breach of that duty through unreasonable conduct; (3) harm caused to the plaintiff; and (4) a reasonably close causal connection between the breach and harm. The document provides examples of cases that further explain these elements and the defenses of contributory negligence and voluntary assumption of risk.
The document discusses various types of flaws in consent that can make a contract voidable, including coercion, undue influence, misrepresentation, and mistake. It provides definitions and examples of each flaw. For coercion, it discusses threats to commit suicide being considered coercion and the effect of coercion making a contract voidable. For undue influence, it discusses relationships where influence may occur and a case example. It also compares coercion and undue influence. The document further explores the elements needed to establish fraud and misrepresentation, and the effects they have in making a contract voidable. It concludes with discussing bilateral and unilateral mistakes of fact and law.
The document discusses the concepts of free consent, coercion, undue influence, misrepresentation, fraud, and mistake under Indian contract law. It provides definitions and explanations of these concepts according to various sections of Indian contract law. Specifically, it explains that for consent to be considered free, it cannot be caused by coercion, undue influence, fraud, misrepresentation or mistake. It also discusses the implications and consequences of contracts entered into without free consent due to these vitiating factors.
This document discusses various concepts relating to contracts and obligations under Philippine law. It covers topics such as grounds for damages in cases of fraud, negligence, or delay in contractual obligations. It also defines different types of damages and discusses the distinction between fraud (dolo) and negligence (culpa) as grounds for liability. Additionally, it summarizes the rights of creditors after pursuing a debtor's property, the presumption of payment if interest is not reserved, and the transmissibility of rights acquired from obligations.
1. The document provides an introduction to the study of torts, including definitions of key concepts such as tort, person, and liability.
2. It discusses distinctions between tort and crime, noting that tort involves less serious wrongs addressed through civil suits while crime involves more serious wrongs addressed through criminal prosecution.
3. The document also examines whether a fetus can be considered a legal person, noting differing approaches in various jurisdictions.
This document outlines different kinds of obligations according to various criteria such as sanction, subject matter, number of persons obliged, mode of performance, sequence of performance, object, and those under the Civil Code including pure and conditional, with a period, alternative, joint and solidary, divisible and indivisible, and with a penal clause.
The document discusses various aspects of free consent in contracts under Indian law. It covers concepts like coercion, undue influence, fraud, misrepresentation, and mistake. Coercion involves threats to compel someone into a contract. Undue influence involves exploiting power dynamics between parties. Fraud involves intentional deception. Misrepresentation involves unintentional false statements. Mistakes can invalidate a contract depending on whether both parties were mistaken or just one. Lack of free consent makes a contract voidable or in some cases void.
Standing in tort law and consumer protection law is subject to certain restrictions based on a person's status. Traditionally, only those who suffered a specific legal injury had standing to sue. However, the law has liberalized to allow public interest litigation where there is injury to public interest. Now, any person with sufficient interest can file a lawsuit to prevent a public wrong or remedy a public injury.
1. The document discusses the different sources and types of obligations under Philippine law, including obligations arising from law, contracts, quasi-contracts, delicts, and quasi-delicts.
2. It explains the key elements and requisites of an obligation, as well as the nature and effects of obligations. Obligations can be personal, requiring an act or omission, or real, requiring the delivery of a thing.
3. The duties of debtors in obligations to deliver things are outlined, whether the thing is determinate, generic, or limited generic. Available remedies for creditors in cases of non-performance are also summarized.
1. The document defines and describes the different elements and kinds of obligations under Philippine contract law. It identifies the active subject, passive subject, efficient cause, and object as the elements of an obligation.
2. It categorizes obligations based on their source according to the New Civil Code, including those arising from law, contracts, quasi-contracts, acts or omissions punished by law, and quasi-delicts. Quasi-contracts include negotiorum gestio and solutio indebiti.
3. The document also outlines the different types of obligations based on criteria like the subject matter, affirmativeness/negativeness, and persons obliged
Ppt lw202 topic 1 incapacity to contract-sem 2 2017s11135757
This document provides an overview of the Week 2 lecture for Contract Law II. The key learning objectives are to understand who lacks capacity to contract, including minors, drunk or mentally ill persons, and corporations. Minors' contracts are generally void, except for necessaries and beneficial services. Drunk or mentally ill persons' contracts are voidable. Corporations' contracts must be within their legal powers as defined in their articles; government contracts may be void if not complying with statutory requirements. The lecture covers these topics in detail and provides example cases. It concludes with review questions and an outline of the following week's topic on misrepresentation.
Any civil wrong is subject matter of Law of torts. Principles of law of torts have been discussed in this presentation for the students in simple ways.
The document summarizes key aspects of contract law in India based on the Indian Contract Act of 1872. It defines contracts and agreements, and outlines the essential elements of a valid contract including offer and acceptance, consideration, capacity of parties, free consent, lawful object, and certainty of meaning. It also discusses void agreements, communication of proposals and acceptances, contingent contracts, quasi-contracts, and ways for contracts to be discharged.
This document discusses various provisions related to contracts and obligations under Philippine law. It begins by explaining the standard of care required to fulfill obligations (diligence of a good father of a family) and discusses examples of liability. It then addresses the rights of creditors prior to delivery of goods, distinguishing personal and real rights. Different types of delivery are outlined, including actual, constructive, and delivery of accessions/accessories. Remedies for failed obligations are discussed, noting that specific performance is not available and the obligation must be fulfilled at the debtor's expense. The document concludes by covering default, including when it arises and its effects on risk and liability.
The document discusses various aspects of free consent in contracts such as coercion, undue influence, misrepresentation, fraud, and mistake. It defines these terms and explains how and when consent is considered not free due to these factors. Consent obtained through coercion, undue influence, fraud or misrepresentation makes the contract voidable at the option of the aggrieved party who can also claim damages in some cases. Mistakes can also vitiate consent if bilateral but not if unilateral unless induced by misrepresentation.
The National Centre for Strategic Leadership forms part of the Silverstone High Performance Centre – to support and develop high performing teams across all business sectors throughout the UK and internationally.
This document outlines an agenda and case studies for a presentation on complex claims investigations. The presentation covers contestable investigations, suicide investigations, accidental death policies, and critical illness riders. Case studies are provided for each topic, describing fact scenarios and policy provisions. The purpose is to identify relevant questions to ask given the specific facts and contract language. The goal is to have a fair and consistent process for rendering reasonable claims decisions. Attendees are encouraged to ask questions.
The document discusses personal resilience and is from a speaker named Gary Hogman. It defines resilience as the capacity to overcome or be enhanced by adverse events through personal features. It explores the contexts, events, personal features, evaluations, and outcomes involved in resilience processes. Personal features discussed include selves and observations about human behavior. Methods to build resilience discussed include finding meaning in life through values, assertiveness, problem solving using imagination and logic, building relationships, and activities like writing, self-talk, and learning.
Civil code of the philippines.book iv.title ii.contracts.art.1305 1308Kristine Lungay
This document summarizes key parts of the Civil Code of the Philippines relating to contracts. It discusses the definition of a contract, characteristics of contracts such as their relativity and consensuality. It also categorizes different types of contracts based on aspects like name, perfection, cause, and obligatory force. The document outlines rules regarding stipulations in contracts, mutuality, determination of performance by third parties, effects on third persons, protection of creditors, inducement of breach, and requisites for a valid contract. It was prepared by Kristine N. Lungay as part of a summary of Articles 1305 to 1318 of the Civil Code pertaining to contracts.
This document summarizes the law around tracing trust assets when misappropriated by a trustee. It discusses the differences between tracing in common law and equity. In common law, tracing is allowed if the property has not changed form, but if it has, only damages are available. In equity, tracing is allowed even if the property has changed form or been mixed with other assets. There are also specific rules discussed around tracing mixed assets, between multiple trusts, in bank accounts, and exceptions where tracing is not available such as against a bona fide purchaser or when the property can no longer be identified.
This document outlines the essential requisites of contracts under Philippine law, including consent, parties' capacity to contract, offer and acceptance, cause, and object. It discusses the rules regarding consent, such as the definition of consent and when it is vitiated by mistake, violence, intimidation, undue influence or fraud. It also covers offer and acceptance, including the requirements for a valid offer and acceptance. Additionally, it defines the concepts of cause and object of a contract and the relevant requisites.
T1, 2021 business law lecture week 5 - law of torts - negligence 1markmagner
The document discusses the key elements of negligence claims under tort law. It begins by defining a tort and distinguishing torts from contracts and criminal law. It then outlines the four elements needed to prove negligence: (1) a duty of care owed by the defendant; (2) a breach of that duty through unreasonable conduct; (3) harm caused to the plaintiff; and (4) a reasonably close causal connection between the breach and harm. The document provides examples of cases that further explain these elements and the defenses of contributory negligence and voluntary assumption of risk.
The document discusses various types of flaws in consent that can make a contract voidable, including coercion, undue influence, misrepresentation, and mistake. It provides definitions and examples of each flaw. For coercion, it discusses threats to commit suicide being considered coercion and the effect of coercion making a contract voidable. For undue influence, it discusses relationships where influence may occur and a case example. It also compares coercion and undue influence. The document further explores the elements needed to establish fraud and misrepresentation, and the effects they have in making a contract voidable. It concludes with discussing bilateral and unilateral mistakes of fact and law.
The document discusses the concepts of free consent, coercion, undue influence, misrepresentation, fraud, and mistake under Indian contract law. It provides definitions and explanations of these concepts according to various sections of Indian contract law. Specifically, it explains that for consent to be considered free, it cannot be caused by coercion, undue influence, fraud, misrepresentation or mistake. It also discusses the implications and consequences of contracts entered into without free consent due to these vitiating factors.
This document discusses various concepts relating to contracts and obligations under Philippine law. It covers topics such as grounds for damages in cases of fraud, negligence, or delay in contractual obligations. It also defines different types of damages and discusses the distinction between fraud (dolo) and negligence (culpa) as grounds for liability. Additionally, it summarizes the rights of creditors after pursuing a debtor's property, the presumption of payment if interest is not reserved, and the transmissibility of rights acquired from obligations.
1. The document provides an introduction to the study of torts, including definitions of key concepts such as tort, person, and liability.
2. It discusses distinctions between tort and crime, noting that tort involves less serious wrongs addressed through civil suits while crime involves more serious wrongs addressed through criminal prosecution.
3. The document also examines whether a fetus can be considered a legal person, noting differing approaches in various jurisdictions.
This document outlines different kinds of obligations according to various criteria such as sanction, subject matter, number of persons obliged, mode of performance, sequence of performance, object, and those under the Civil Code including pure and conditional, with a period, alternative, joint and solidary, divisible and indivisible, and with a penal clause.
The document discusses various aspects of free consent in contracts under Indian law. It covers concepts like coercion, undue influence, fraud, misrepresentation, and mistake. Coercion involves threats to compel someone into a contract. Undue influence involves exploiting power dynamics between parties. Fraud involves intentional deception. Misrepresentation involves unintentional false statements. Mistakes can invalidate a contract depending on whether both parties were mistaken or just one. Lack of free consent makes a contract voidable or in some cases void.
Standing in tort law and consumer protection law is subject to certain restrictions based on a person's status. Traditionally, only those who suffered a specific legal injury had standing to sue. However, the law has liberalized to allow public interest litigation where there is injury to public interest. Now, any person with sufficient interest can file a lawsuit to prevent a public wrong or remedy a public injury.
1. The document discusses the different sources and types of obligations under Philippine law, including obligations arising from law, contracts, quasi-contracts, delicts, and quasi-delicts.
2. It explains the key elements and requisites of an obligation, as well as the nature and effects of obligations. Obligations can be personal, requiring an act or omission, or real, requiring the delivery of a thing.
3. The duties of debtors in obligations to deliver things are outlined, whether the thing is determinate, generic, or limited generic. Available remedies for creditors in cases of non-performance are also summarized.
1. The document defines and describes the different elements and kinds of obligations under Philippine contract law. It identifies the active subject, passive subject, efficient cause, and object as the elements of an obligation.
2. It categorizes obligations based on their source according to the New Civil Code, including those arising from law, contracts, quasi-contracts, acts or omissions punished by law, and quasi-delicts. Quasi-contracts include negotiorum gestio and solutio indebiti.
3. The document also outlines the different types of obligations based on criteria like the subject matter, affirmativeness/negativeness, and persons obliged
Ppt lw202 topic 1 incapacity to contract-sem 2 2017s11135757
This document provides an overview of the Week 2 lecture for Contract Law II. The key learning objectives are to understand who lacks capacity to contract, including minors, drunk or mentally ill persons, and corporations. Minors' contracts are generally void, except for necessaries and beneficial services. Drunk or mentally ill persons' contracts are voidable. Corporations' contracts must be within their legal powers as defined in their articles; government contracts may be void if not complying with statutory requirements. The lecture covers these topics in detail and provides example cases. It concludes with review questions and an outline of the following week's topic on misrepresentation.
Any civil wrong is subject matter of Law of torts. Principles of law of torts have been discussed in this presentation for the students in simple ways.
The document summarizes key aspects of contract law in India based on the Indian Contract Act of 1872. It defines contracts and agreements, and outlines the essential elements of a valid contract including offer and acceptance, consideration, capacity of parties, free consent, lawful object, and certainty of meaning. It also discusses void agreements, communication of proposals and acceptances, contingent contracts, quasi-contracts, and ways for contracts to be discharged.
This document discusses various provisions related to contracts and obligations under Philippine law. It begins by explaining the standard of care required to fulfill obligations (diligence of a good father of a family) and discusses examples of liability. It then addresses the rights of creditors prior to delivery of goods, distinguishing personal and real rights. Different types of delivery are outlined, including actual, constructive, and delivery of accessions/accessories. Remedies for failed obligations are discussed, noting that specific performance is not available and the obligation must be fulfilled at the debtor's expense. The document concludes by covering default, including when it arises and its effects on risk and liability.
The document discusses various aspects of free consent in contracts such as coercion, undue influence, misrepresentation, fraud, and mistake. It defines these terms and explains how and when consent is considered not free due to these factors. Consent obtained through coercion, undue influence, fraud or misrepresentation makes the contract voidable at the option of the aggrieved party who can also claim damages in some cases. Mistakes can also vitiate consent if bilateral but not if unilateral unless induced by misrepresentation.
The National Centre for Strategic Leadership forms part of the Silverstone High Performance Centre – to support and develop high performing teams across all business sectors throughout the UK and internationally.
This document outlines an agenda and case studies for a presentation on complex claims investigations. The presentation covers contestable investigations, suicide investigations, accidental death policies, and critical illness riders. Case studies are provided for each topic, describing fact scenarios and policy provisions. The purpose is to identify relevant questions to ask given the specific facts and contract language. The goal is to have a fair and consistent process for rendering reasonable claims decisions. Attendees are encouraged to ask questions.
The document discusses personal resilience and is from a speaker named Gary Hogman. It defines resilience as the capacity to overcome or be enhanced by adverse events through personal features. It explores the contexts, events, personal features, evaluations, and outcomes involved in resilience processes. Personal features discussed include selves and observations about human behavior. Methods to build resilience discussed include finding meaning in life through values, assertiveness, problem solving using imagination and logic, building relationships, and activities like writing, self-talk, and learning.
Ethicability for Organisations Today and into the Future led by Roger Steare, FRSA, FIPR, Professor in Organisational Ethics, Cass.
It should appeal to managers, consultants, academics, HR Directors, and entrepreneurs at all levels who are involved in decision-making, want to develop good thinking, positive dialogue and ethical behaviour in the workplace.
CMI's paper argues that the Government is right to look at the issue of women's under representation in the boardroom, not only for reasons of fairness but because it will be to the benefit of business to draw on a wider talent pool and a diversity of viewpoints.
Each time you take a step or a vehicle changes speed or direction, it is experiencing acceleration. Acceleration is the rate of change of velocity over time and can be calculated as the change in velocity divided by the time elapsed. For example, a car accelerating from 60 mph to 90 mph in 3 seconds has an acceleration of 10 mph/s. Acceleration can be positive, like the car speeding up, or negative, like when braking and slowing down. Over time, the constant acceleration due to gravity causes objects in free fall to increase their velocity, gaining 10 m/s every second until air resistance balances the downward force.
The document discusses various legal aspects of contracts under Indian law. It defines key concepts like valid contracts, void contracts, voidable contracts, and illegal contracts. It explains essential elements for a valid contract like agreement, lawful consideration, lawful object, and intention to create a legal obligation. It also discusses important concepts related to formation of a contract like offer, acceptance, free consent, contractual capacity, and termination of offer. Finally, it elaborates on vitiating factors like coercion, undue influence, fraud, and misrepresentation that can invalidate a contract.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. The essential elements of a valid contract are offer and acceptance, lawful consideration, capacity of parties to contract, lawful object, and free consent. A contract can be discharged through performance, mutual consent, lapse of time, operation of law, impossibility of performance or breach. In case of breach, the aggrieved party may seek remedies like rescission, damages, specific performance, quantum meruit or injunction.
The Contract Act 1872 lays down the general principles of contract law in India. It establishes the requirements for a valid contract such as offer, acceptance, lawful consideration, capacity to contract, free consent, lawful object and intention to create legal relations. The Act also defines different types of contracts and addresses how contracts are formed, performed and discharged. It provides remedies for breach of contract such as damages, specific performance and injunctions. The Act aims to ensure parties to a contract are bound by certain core obligations while allowing flexibility in agreements.
Malpractice Suit Against Trustee Who Failed to Inform Beneficiaries of Potent...theBurgessGroup
The successor trustees and beneficiaries of the Vitello family trust sued Kathleen King O'Brien, a Michigan lawyer, for malpractice in her handling of a policy owned by the trust when she was the trustee. O'Brien sought coverage from her malpractice insurer, Hartford Casualty. But it denies her claim because she had failed to timely notify it of the reasonably foreseeable possibility that the Vitello trust would pursue a malpractice claim against her.
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This document discusses contractual capacity and incapacity under Indian law. It states that only natural persons who are of sound mind and the age of majority, and not otherwise disqualified, are competent to contract under Section 11. Minors, persons of unsound mind, aliens, foreign states, and some corporations may lack contractual capacity. A minor's contracts are void against the minor to protect their interests. Consent must be free of coercion, undue influence, fraud, or misrepresentation. Contracts can be discharged through performance, mutual consent, lapse of time, operation of law, impossibility of performance, or breach.
This document discusses key concepts related to contracts under Indian law. It covers topics such as the definition of a contract, elements of a valid contract including offer, acceptance, consideration, capacity to contract, and free consent. It also discusses types of contracts and exceptions to the general rules regarding consideration and capacity. Specific elements are outlined for offer, acceptance, consideration, and consent. Conditions that can invalidate consent such as coercion, undue influence, fraud, misrepresentation, and mistake are also detailed. Overall, the document provides a comprehensive overview of the essential elements and principles related to forming valid contracts in India.
What Is Contract?, Formation of Indian Contract Act, Agreement,Offer or Proposal, TYPES OF OFFER, Acceptance, Capacity, Minors, Unsound Mind, Consideration, Consent, Legal Object, Void Agreement, Discharge of Contract, Remedies for breach of contracts, Contingent Contract, Contract of Indemnity, Essential elements of a contract of indemnity , RIGHTS OF INDEMNITY HOLDER, Contract of Guarantee, Essential elements of a contract of Guarantee, CONTRACT OF BAILMENT, Essential elements of a contract of Bailment, MODES OF DELIVERY
Contracts are legally binding agreements between two or more competent parties that usually involve employment, sale or lease of property, or tenancy. The key elements of a valid contract are offer, acceptance, consideration, intention to create legal relations, capacity to contract, certainty of terms, and free consent. Minors and mentally impaired individuals generally lack the capacity to enter into contracts. For a contract to be enforceable, it requires an offer, acceptance of that offer, and consideration or valuable benefit exchanged between the parties.
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The document summarizes key aspects of Indian contract law, including definitions of a contract, essential elements of a valid contract, consent and its types, indemnity and guarantee contracts, discharge of a contract, remedies for breach of contract, and agency relationships. It provides case studies on offer and acceptance, mental incapacity, and types of discharge. In 3 sentences: The document outlines the fundamental principles of contract law in India, examines essential elements of a valid contract and how contracts are formed, and explores various types of contracts including indemnity, guarantee, and agency as well as discharge of contracts and remedies for breach.
This document discusses consideration and the essential elements required for a valid contract. It defines consideration as the price for which a promise is made. An example is provided of a sale agreement where the factory price is the consideration. Essential elements of consideration include it being real, moving at the desire of the promisor, and not being something the promisor is already bound to do. The document outlines different types of consideration like present, past, and future consideration. It also discusses capacity of parties, void agreements, and factors like coercion, undue influence, fraud, and misrepresentation that can invalidate an agreement due to lack of free consent.
T1, 2021 business law lecture 4 - contracts 3markmagner
The document discusses key concepts in contract formation including consent, legality, mistake, misrepresentation, duress and unconscionable conduct. It explains that for a contract to be valid, there must be genuine consent between the parties without mistakes, misrepresentations, duress or other vitiating factors. It also discusses implied terms, integration of collateral contracts, and consequences of signing documents such as exclusion clauses. Legality of contract purpose and restraint of trade provisions are also addressed.
Vitiating Elements in Formation of Contract: Coercion, Fraud and Undue Influe...Preeti Sikder
After completion of this lesson students will be able to:
- define free consent and identify elements of coercion
- define fraud and identify its elements
- define undue influence and identify its elements
This document discusses void, voidable, and valid contracts. It defines key elements of a contract including agreement, consideration, contractual capacity, and legality. It explains that a void contract cannot be enforced in court, while a voidable contract can be enforced or revoked by one party. For a contract to be valid, it requires free consent from both parties without coercion, fraud, misrepresentation, or undue influence. Factors like age, mental capacity, relationship between parties, and unconscionable terms can impact whether a contract has true free consent and is therefore voidable.
This document provides an overview of business law and corporate governance. It defines law and explains that business law, also known as mercantile law or commercial law, deals with the rights and obligations that arise from commercial transactions between businesses. The key areas of business law discussed include contracts, partnerships, companies, negotiable instruments, insurance, and arbitration. A major section focuses on the law of contracts, outlining the essential elements of a valid contract such as offer and acceptance, consideration, capacity and consent. Consent must be free and not influenced by coercion, undue influence, fraud, or mistake. The implications of these flaws in consent are explained.
FCS 3450 HOMEWORK #41.Thomas Franklin arrived at the following t.docxmydrynan
FCS 3450 HOMEWORK #4
1.
Thomas Franklin arrived at the following tax information:
Gross salary, $46,660
Interest earnings, $225
Dividend income, $80
One personal exemption, $3,400
Itemized deductions, $7,820
Adjustments to income, $1,150
What amount would Thomas report as taxable income?
2.
If Lola Harper had the following itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $5,450.
Donations to church and other charities, $1,980
Medical and dental expenses that exceed 7.5 percent of adjusted gross income, $430
State income tax, $690
Job-related expenses that exceed 2 percent of adjusted gross income, $1,610
3.
What would be the average tax rate for a person who paid taxes of $4,864.14 on a taxable income of $39,870?
4.
Based on the following data, would Ann and Carl Wilton receive a refund or owe additional taxes?
Adjusted gross income, $46,186
Itemized deductions, $11,420
Child care tax credit, $80
Federal income tax withheld, $4,784
Amount for personal exemptions, $6,800
Average tax rate on taxable income, 15%
5. Would you prefer a fully taxable investment earning 10.7 percent or a tax-exempt investment earning 8.1 percent? Why? (Assume a 28 percent tax rate.)
6. On December 30, you decide to make a $1,000 charitable donation. If you are in a 28 percent tax bracket, how much would you save in taxes for the current year? If that tax savings was deposited in a savings account for the next five years at 6 percent, what would be the future value of that account?
1
Assignment 2: JPMorgan Chase
Strayer University
LEG 100
Discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy.
On January 11, 2012, the Commodity Futures Trading Commission (CFTC) voted 3-2 to propose regulations to implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), commonly referred to as the “Volcker Rule.” The proposal specifically prohibits a bank or institution that owns a bank from engaging in proprietary trading that is not at the behest of its clients, and from owning or investing in a hedge fund or private equity fund, and also limits the liabilities that the largest banks can hold .Under discussion is the possibility of restrictions on the way market making activities are compensated; traders would be paid on the basis of the spread of the transactions rather than any profit that the trader made for the client.
Determine the elements of a valid contract, and discuss how consumers and banks each have a duty of good faith and fair ...
This document contains a student's assignment on the topic of free consent in contract law. It discusses key concepts such as ad idem, consent, free consent, coercion, undue influence, misrepresentation, fraud, and mistake. The assignment was submitted by Anam Amjad for their Introduction to Business Law course, along with their student registration number and the date and details of the assignment.
Similar to Legal Considerations In Life Insurance (2010 09 23) (20)
This document summarizes a presentation on long term care given at an annual insurance conference. It discusses the history and evolution of long term care options and insurance from the 1970s to present. In the early years, nursing homes were the primary option and coverage was limited. Over the decades, more options like assisted living and home care emerged, as did more comprehensive insurance policies. The presentation concludes by asking questions about lessons learned, gaps that still need addressed, and the future of long term care delivery.
This document provides an overview and update on health insurance law and litigation related to the Patient Protection and Affordable Care Act (PPACA). It summarizes key provisions and goals of the PPACA related to increasing access and affordability of health insurance. It also reviews major litigation challenging various aspects of the PPACA, including the individual and employer mandates, Medicaid expansion, and preventive care coverage mandate. The document analyzes the Supreme Court's rulings upholding most provisions of the PPACA and discusses ongoing implementation and compliance issues.
The Affordable Care Act Upheld: Now What for Our Clients?Rob Pohls
On June 28, 2012, the Supreme Court issued its decision in a trio of cases which challenged the constitutionality of certain provisions in the Affordable Care Act. Ultimately, a majority of the justices concluded that the Act’s “individual mandate” was not authorized by the Commerce Clause. U.S. Const. Art. I, §8, cl. 3. At the same time, though, a different majority of the justices concluded that the provision was within Congress’ power to “lay and collect taxes.” U.S. Const. Art. I, §8, cl. 1. The Affordable Care Act therefore has survived its primary constitutional challenges to date. To be sure, the public remains divided in its support for the legislation, and the national election in November 2012 is likely to spark further debate about whether to expand, contract or otherwise substantively change the Affordable Care Act. In the meantime, the Affordable Care Act still promises to have a profound impact on health insurers, employers and virtually every American citizen. An understanding of the Affordable Care Act’s main provisions and the key changes for which they call therefore is essential to the advice we can provide to our clients.
Making Sense of the Interplay Between Securities Law/Broker-Dealer Rules and ...Rob Pohls
The presentation discussed the complex interplay between insurance law, securities law, and trust law as they relate to the sale and ownership of variable insurance products, highlighting issues around standing, damages, duties of agents and brokers, and performance of insurance contracts and investment choices. Key topics included determining who has standing to bring claims or lawsuits and understanding the duties insurance agents and brokers owe to policyowners.
What Do Health Insurance Litigators Face in 2012 and Beyond?Rob Pohls
This document provides an overview of the key legal challenges that health insurance litigators may face in 2012 and beyond related to the Affordable Care Act. It summarizes the pending Supreme Court case challenging the constitutionality of the individual mandate provision. The document outlines the four questions that will be addressed by the Supreme Court related to whether the individual mandate is a tax, if it exceeds Congress' powers under the Commerce Clause, and whether it is severable from the rest of the Act if found unconstitutional. It provides background on the Commerce Clause and relevant case law informing each question.
This document discusses post-claim underwriting and how to avoid it. It defines post-claim underwriting as when an insurer chooses not to pursue or complete its underwriting of a risk until after a claim is made. This can expose insurers to claims that they improperly delayed investigating important information about an applicant's eligibility until a claim occurred. The document examines the legal elements required to form a valid contract, as well as defenses that allow for contract rescission due to issues affecting consent like mistakes, misrepresentations, fraud and more. It provides examples of state insurance laws regarding the right to rescind a policy.
This document outlines an agenda for a conference session on proving insurance fraud. The agenda covers rescission checklists, claim strategies, litigation strategies, and trial strategies. It also provides details on several items to consider in a rescission checklist, including ensuring you have a complete file, understanding the governing law, identifying any misrepresentations or concealment by the applicant, and assessing delivery of the policy and use of conditional receipts. The goal is to eliminate liability for fraudulent claims while reducing legal fees and costs.
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Legal Considerations In Life Insurance (2010 09 23)
1. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Robert R. Pohls Managing Attorney 1550 Parkside Drive, Suite 260 Walnut Creek, California 94596 Tel: 925.973.0300 Fax: 925.973.0330 E-mail: rpohls@califehealth.com WWW.CALIFEHEALTH.COM
2. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Possible Agenda: Partial List Conditional Receipts Temporary Coverage Lapse Premium Offset Insurable Interests STOLI Closed Books of Business Accidental Death Suicide Felony Exclusions Intoxication Exclusions Presumption of Death Beneficiary Changes Community Property Interests Undue Influence Duress Automatic Revocation Statutes Slayer Statute Interpleader Prior Manifestation Delivery Changes in Health Duty to Read Misrepresentation Concealment Materiality Waiver/Estoppel Agent Misconduct Imputed Knowledge Post-Claim Underwriting Impostors Forgery Contestability Foreign Death Claims HIPAA and Privacy Laws Bad Faith Punitive Damages ERISA Unfair Competition Slide 2
3. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Possible Agenda: Partial List Conditional Receipts Temporary Coverage Lapse Premium Offset Insurable Interests STOLI Closed Books of Business Accidental Death Suicide Felony Exclusions Intoxication Exclusions Presumption of Death Beneficiary Changes Father Guido Sarducci’s 5 Minute University Community Property Interests Undue Influence Duress Automatic Revocation Statutes Slayer Statute Interpleader Prior Manifestation Delivery Changes in Health Duty to Read Misrepresentation Concealment Materiality Waiver/Estoppel Agent Misconduct Imputed Knowledge Post-Claim Underwriting Impostors Forgery Contestability Foreign Death Claims HIPAA and Privacy Laws Bad Faith Punitive Damages ERISA Unfair Competition Spanish: Como estausted? Muibuen. Economics: Supply and Demand. Theology: Where is God? God is everywhere. Slide 3
4. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Essential Elements A contract is “an agreement to do or not do a certain thing.” The essential elements for forming a contract are: 1) parties capable of contracting; 2) consent; 3) a lawful object; and 4) sufficient consideration. Slide 4
5. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Parties There must be at least two parties to a contract – a promisor and a promisee – but there may be any greater number. The general rule is that all persons are capable of contracting, except: 1) minors; 2) persons of unsound mind; and 3) persons deprived of civil rights. Slide 5
6. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example:Sales Agents “A mere soliciting agent or other intermediary operating between the insured and the insurer has authority only to initiate contracts, but not to consummate them, and cannot bind his principal by anything he may say or do during the preliminary negotiations.” Duarte v. Postal Union Life Ins. Co. 75 Cal.App.2d 557, 571 (1946) Slide 6
7. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Insurable Interest A person taking out a policy of insurance upon the life of another must have an insurable interest in the life of the other person. Otherwise, the policy is a mere wager on the life of the person insured, and the policy is void as against public policy. Warnock v. Davis, 104 U.S. (14 Otto) 775 (1882) Cal. Insurance Code §252 Slide 7
8. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Insurable Interest Every person has an insurable interest in the life and health of: (a) Himself; (b) Any person on whom he depends for education or support; (c) Any person under a legal obligation to him for the payment of money or respecting property or services; and (d) Any person upon whose life any estate or interest vested in him depends. Cal. Insurance Code §10110 Slide 8
9. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Insurable Interest An insurable interest, with reference to life and disability insurance, is an interest based upon : · a reasonable expectation of pecuniary advantage through the continued life, health, or bodily safety of another person and consequent loss by reason of that person’s death or disability; or · a substantial interest engendered by love and affection in the case of individuals closely related by blood or law. Cal. Insurance Code §10110.1(a) Slide 9
10. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example:Stranger-Owned Life Insurance An "interest in the life or health of a person insured must exist when the insurance takes effect, but need not exist thereafter or when the loss occurs." Cal. Insurance Code §286 Typical scenario: · Individual obtains non-recourse loan from 3rd party investor to finance premiums · After 2 years, insured transfers ownership of policy to the investor, who “forgives” the loan Slide 10
11. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example:Stranger-Owned Life Insurance “Trusts and special purpose entities that are used to apply for and initiate the issuance of policies of insurance for investors, where one or more beneficiaries of those trusts or special purpose entities do not have an insurable interest in the life of the insured, violate the insurable interest laws and the prohibition against wagering on life.” Cal. Insurance Code §10110(d) Effective 1/1/2010 Applies only to policies issued after 7/1/2010 Slide 11
12. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Consent Every contract requires consenting parties. Absent fraud, duress, or mistake, the parties’ consent is determined by the reasonable meaning of their words and acts – ie., not from their unexpressed intentions or understanding. The manifestation of a party’s consent usually is accomplished through an offer and an acceptance. Slide 12
13. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Offers An offer is the manifestation of willingness to enter into a bargain, made in a way that the other person is justified in understanding that his or her consent to the bargain is invited and will conclude it. An offer must be sufficiently definite that the performance promised is reasonably certain. Slide 13
14. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Invitation to Make Offers Suggesting the terms of a possible contract without making a definite proposal is a mere invitation to make offers. A manifestation of willingness to enter into a bargain is not an offerif the other person knows or has reason to know that the person making it does not intend to conclude the bargain until he or she has made a further manifestation of assent. Slide 14
15. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Acceptance The offeror’s manifested intention determines the person(s) with the power of acceptance. The acceptor must know of the offer and manifest assent to its terms. The acceptance must be absolute and unqualified. It also must be communicated to the offeror. Silence ordinarily is not enough. Slide 15
16. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Counter-Offers A qualified acceptance is a new proposal. It constitutes a rejection of the original offer. It also constitutes an offer to enter a new contract with different terms. By making a counter-offer, the offeree loses the power of acceptance with respect to the original offer. No contract is formed unless the counter-offer is accepted. Slide 16
17. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Reality of Consent In rare cases of physical compulsion, a person is caused to manifest consent when the person does not understand the transaction or does not intend to enter a contract. Under those circumstances, the contract is void. When the promisor is deceived as to the nature of his or her act and actually does not know what is being signed (or does not intend to enter a contract), mutual assent is lacking, and the contract is void. Slide 17
18. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Freedom of Consent “A consent which is not free is nevertheless not absolutely void.” Cal. Civil Code §1566 The aggrieved party must rescind by giving prompt notice and offering to restore any consideration received. Taylor v. Hopper, 207 Cal. 102 (1929) Slide 18
19. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Freedom of Consent A party’s consent is not freely given if it is the product of: · Undue influence; · Duress; · Fraud; or · Mistake. Slide 19
20. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example: Interpleaders “Any person, firm, corporation, association of other entity against whom double or multiple claims are made, or may be made, by two or more persons which are such that they may give rise to double or multiple liability, may bring an action against the claimants to compel them to interplead and litigate their several claims.” Cal. Code of Civil Procedure §386(b) Slide 20
21. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Fraud Fraudis the suggestion, as a fact, of that which is not true, by one who does not believe it to be true. It generally involves: 1) a false representation of material fact; 2) made with knowledge of its falsity; 3) with the intent to induce the person to act upon it; 4) actual and reasonable reliance upon the representation; and 5) resulting damage. The suppression of that which is true, by one having knowledge or belief of the fact, also can be fraud. Slide 21
22. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Mutual Mistake If both parties are mistaken and neither is at fault (or both are equally to blame), the mistake may prevent formation of a contract. Example: If the mistake involves the subject matter of the contract, the contract is void because there was nomeeting of the minds. Raffles v. Wichelhaus, 2 H.&C. 906 But: If one party so negligently expressed itself that the other party reasonably believed an agreement existed, the contract may be enforced. Chakmak v. H.J. Lucas Masonry, 55 Cal.App.3d 124 (1976) Slide 22
23. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Unilateral Mistake Original rule A contract formed when one party has made a unilateral mistake is not voidable unless the other party had reason to know of the mistake or his or her fault caused the mistake. Modern rule A party who has made a unilateral mistake cannot rescind a contract unless: 1) the mistake involved a basic assumption about the contract; 2) the mistake had a material effect on the agreed performances; 3) the mistaken party does not bear the risk of the mistake; and 4) enforcing the contract would be unconscionable. Slide 23
24. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Misrepresentations “If a representation is false in a material point, whether affirmative or promissory, the injured party is entitled to rescind the contract from the time the representation becomes false.” Cal. Insurance Code §359 “Whether the representation was intentionally or unintentionally false does not alter the injured party's right to rescind the policy.” Telford v. New York Life Ins. Co., 9 Cal.2d 103, 105 (1937) Taylor v. Sentry Life Ins. Co., 729 F.2d 652 (9th Cir. 1984) Slide 24
25. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Concealment Concealment is a "[n]eglect to communicate that which a party knows, and ought to communicate.“ Cal. Insurance Code §330 Concealment, “whether intentional or unintentional, entitles the injured party to rescind insurance.” Cal. Insurance Code §331 Slide 25
26. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Materiality “Materiality is to be determined not by the event, but solely by the probable and reasonable influence of the facts upon the party to whom the communication is due, in forming his estimate of the disadvantages or the proposed contract, or in making his inquiries.” Cal. Insurance Code §334 Slide 26
27. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Materiality Materiality is determined under “a subjective test; the critical question is the effect the truthful answers would have had on [the insurer], not on some ‘average reasonable’ insurer.” Imperial Casualty & Indemnity Co. v. Sogomonian 198 Cal.App.3d 169, 181 (1988) Slide 27
28. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Materiality “The fact that the insurer has demanded answers to specific questions in an application for insurance is in itself usually sufficient to establish materiality as a matter of law.” Thompson v. Occidental Life Insurance Co. 9 Cal.3d 904, 916 (1973) “An incorrect answer on an insurance application does not give rise to the defense of fraud where the true facts, if known, would not have made the contract less desirable to the insurer.” Ransomv. Penn Mutual Life Insurance Co. 43 Cal.2d 420, 427 (1954) Slide 28
29. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Examples:Materiality If insurer knew the truth, it would have rejected the applicant as uninsurable and declined to issue a policy. Wilson v. Western National Life Ins. Co. 235 Cal.App.3d 981, 994 (1991) If insurer knew the truth, it would have issued a policy on different terms (e.g., with higher premiums). Kentucky Cent. Life Ins. Co. v. Marin Bay Park Trust 958 F.2d 377 (9th Cir.1992) Old Line Life Ins. Co. v. Superior Court 229 Cal.App.3d 1600 (1991) Slide 29
30. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Materiality “The trier of fact is not required to believe the ‘post mortem’ testimony of an insurer's agents that insurance would have been refused had the true facts been disclosed.” Thompson v. Occidental Life Ins. Co. 9 Cal.3d 904, 916 (1973) McAuliffe v. John Hancock Mut. Life Ins. Co. 245 Cal.App.2d 855, 858 (1966) Additional evidence: • UW guidelines • UW referral memos Slide 30
31. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example:Materiality • Clean application denies history of Tx for STD’s • H murders W • Medical records: 3 doctor visits for vaginal warts • UW guidelines: • issue standard if three treatments for same exposure • rate or decline if treatment for multiple exposures • Argument: material because UW would have made further inquiries (e.g., exam; blood test) Slide 31
32. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Materiality “It is not necessary that the misrepresentation have any causal connection with the death of the insured.” Torbensen v. Family Life Ins. Co. 163 Cal.App.2d 401, 405 (1958) Cohen v. Penn Mutual Life Ins. Co. 48 Cal.2d 720, 726 (1957) Slide 32
33. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Contestability A life insurance policy must contain a provision that, except for nonpayment of premiums, it is incontestable after it has been: (1) in force; (2) during the lifetime of the insured; (3) for a period of not more than two years after its date of issue. Cal. Insurance Code §10113.5 Cal. Insurance Code §10206(a) Slide 33
34. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Contestability “When an insurance policy by its provisions is made incontestable after a specified period, the intent of the parties is to fix a limited time within which the insurer must discover and assert any grounds it might have to justify a rescission of the contract." New York Life Ins. Co. v. Hollender 38 Cal.2d 73, 78 (1951) Incontestability provisions do not preclude “the assertion of defenses based upon policy provisions that exclude or restrict coverage." Cal. Insurance Code §10113.5(c) Slide 34
35. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example:Impostors Facts: · HIV-positive applicant sent impostor to paramedical exam · Applicant died after policy had been in force for 2 years Held: · Contract was valid because there was no mistake about the applicant’s identity – only mistake was about who attended the paramedical exam · Contestability provision bars rescission · No exception for fraud -- even when an impostor! Amex Life Assurance Co. v. Superior Court (Slome Capital) 14 Cal.4th 1231 (1997) Slide 35
36. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Impostors “. . . if photographic identification is presented during the application process, and if an impostor is substituted for a named insured in any part of the application process, with or without knowledge of the named insured, then no contact between the insurer and the named insured is formed and any purported insurance contract is void from its inception.” Cal. Insurance Code §10113.5(b)(1) Slide 36
37. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Duty to Disclose “Each party to a contract of insurance shall communicate to the other, in good faith, all facts within his knowledge which are or which he believes to be material to the contract and as to which he makes no warranty, and which the other has not the means of ascertaining.” Cal. Insurance Code §333 Slide 37
38. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Right to Rely on Applicant An insurer “has the unquestioned right to select those whom it will insure and to rely upon him who would be insured for such information as it desires as a basis for its determination to the end that a wise discrimination may be exercised in selecting its risks." Robinson v. Occidental Life Ins. Co. 131 Cal.App.2d 581, 586 (1955) Slide 38
39. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Waiver “The right to information of material facts may be waived, either by (a) the terms of insurance or (b) by neglect to make inquiries as to such facts, where they are distinctly implied in other facts of which information is communicated.” Cal. Insurance Code §336 Slide 39
40. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Waiver An insurer cannot rescind when it has knowledge that the applicant’s representation was false. DiPasqua v. California etc. Life Ins. Co. 106 Cal.App.2d 281, 284-285 (1951) When insurer has information indicating responses were untrue before it issued the policy, it waives the right to additional information by failing to investigate. Rutherford v. Prudential Ins. Co. 234 Cal.App.2d 719, 735 (1965) Slide 40
41. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Waiver There is no duty to make further inquiries unless the known facts “distinctly imply” misrepresentations that are material. West Coast Life Ins. Co. v. Ward, 132 Cal.App.4th 181, 192-193 (2005) Insurer with knowledge that one of the applicant’s answers is erroneous may, if it chooses, waive that fact and still rescind on the basis of other misrepresentations. Maggini v. West Coast Life Ins. Co., 136 Cal.App. 472 (1934) Slide 41
42. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example:Waiver Applicant denied using controlled substances (except Rx) Applicant stated his alcohol consumption was limited to a “couple of beers socially” Evidence: Heavy alcohol use; Recreational drug use Problem: Elevated liver enzymes Argument #1: Did not “distinctly imply” falsity because there are other causes of elevated liver enzymes Argument #2: Nothing to imply falsity of misrepresentation about using controlled substances Slide 42
43. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Imputed Knowledge The insurer is charged with knowledge of information given to the agent, even if the insurer does not have actual knowledge of it. Elfstrom v. New York Life Ins. Co., 67 Cal.2d 503 (1967) Where the insured, in good faith, makes truthful answers to the questions contained in the application, but his answers, owing to the fraud, mistake, or negligence of the agent filling out the application, are incorrectly transcribed, the company is estopped to assert their falsity as a defense to the policy. Boggio v. California-Western States Life Ins. Co. 108 Cal.App.2d 597 (1952) Slide 43
44. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Duty to Read “The requirement of fair dealing is laid on both parties to the contract. This requirement entails a duty on the part of the insured to read the contract and the application in accordance with her representations and to report to the company any misrepresentations or omissions.” “By neglecting to inform the Company of the material omissions, the insured became responsible for such misrepresentations or omissions.” Telford v. New York Life Ins. Co., 9 Cal.2d 103, 107 (1937) Layton v. New York Life Ins. Co., 55 Cal.App. 202, 206-207 (1921) Slide 44
45. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Rescission: Duty to Read Insured’s failure to report misstatements in the application does not restore the insurer’s right to rescind if: ·Agent’s explanation of questions made insured unable to appreciate the falsity of the answers. Boggio v. California-Western States Life Ins. Co. 108 Cal.App.2d 597 (1952) ·Applicant does not receive the application or, because of some other action by the agent or insurer, is prevented from reading it. Rutherford v. Prudential Ins. Co. of America 234 Cal.App.2d 719 (1965) Slide 45
46. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example: Waiver and Imputed Knowledge Application: · 32 years old · 5’1” and 120 lbs. · No Adverse Medical History · No History of Tobacco Use Evidence: · 32 years old · 5’1” and 309 lbs. · Heavy Smoker · HBP; Asthma; COPD; Cardiomegaly; CHF · 10 year history of mental illness Slide 46
47. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example: Waiver and Imputed Knowledge Impostor: Application completed in L.A. on 3/17 Insured was in a Houston hospital since 3/14 Claim #1: Medical records are wrong Claim #2: Application actually completed in February Claim #3: Agent was told about mental illness Claim #4: Agent never asked “medical” questions Claim #5: Agent completed and forged the application Claim #6: Agent never delivered the policy Slide 47
48. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Consideration Each party to the contract must give (or promise to give) something of value. That value (or “consideration”) may be either: 1) a benefit conferredor agreed to be conferred upon the promisor or someone else; or 2) a detriment suffered or agreed to be suffered by the promisee (or someone else). Slide 48
49. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Contract Formation: Consideration “An insurer is entitled to payment of the premium as soon as the subject matter insured is exposed to the peril insured against.” Cal. Insurance Code §480 Applying premiums to a period before the policy’s effective date may shorten time periods (e.g., the contestability period) that are based on the policy’s effective date. Guerin v. California Western States Life Ins. Co. 229 Cal.App.2d 325 (1964) Slide 49
50. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example: Temporary Insurance “When a payment is made equal to the full first premium at the time an application for life insurance . . . is signed by the applicant and either (1) the applicant received at the time a receipt for such payment on a form prepared by the insurer, or (2) . . . the insurer, pursuant to its regular underwriting practices and standards, approves the application . . . and the person dies on or before the date of the application . . . but before such policy is issued and delivered, the insurer shall pay such amount as would have been due under the terms of the policy. . . .” Cal. Insurance Code §10115 Slide 50
51. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 Example:Binding Receipt · “There is no coverage under this Receipt if the application contains any material misrepresentation.” · “No death benefit is provided by this Receipt unless death results from an accident that occurs or an illness that first manifests itself after the Application Date.” · “Coverage under this Receipt will end when the first of the following occurs: (a) The application is approved; (b) Notice of disapproval of the application is given; (c) 60 days have expired starting with the Application Date.” Slide 51
52. LEGAL CONSIDERATIONS IN LIFE INSURANCE Northern California Life Insurance Association – September 23, 2010 QUESTIONS? QUESTIONS? Robert R. Pohls Managing Attorney 1550 Parkside Drive, Suite 260 Walnut Creek, California 94596 Tel: 925.973.0300 Fax: 925.973.0330 E-mail: rpohls@califehealth.com Slide 52 WWW.CALIFEHEALTH.COM