Insured
The person or entity whose life, health, property, or liability is covered by the insurance policy, and in whose favor benefits are payable in most cases.
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Practice This Concept
An insured regularly burns trash in a dry field near a wooden shed; a stray spark ignites the shed. Which option correctly pairs the peril and the hazard in this scenario?
Peril — fire; hazard — the dry field and wooden shed — The peril is the actual cause of loss — the fire that destroyed the shed. The hazard is the condition that increased the chance of fire — the dry field and the wooden shed. Hazards may be physical (tangible conditions), moral (dishonesty), or morale (carelessness bred by the existence of coverage). Correctly separating peril from hazard is essential to risk classification and loss-prevention analysis.
National insurance concept
Under California law, if an insured violates a material warranty or other material provision of the policy:
The insurer is entitled to rescind the policy — CIC Section 447 provides that the violation of a material warranty or other material provision of a policy, by either party, entitles the other party to rescind. A warranty is a promise or statement of fact that the policy requires to be true; warranties may be express or implied (Section 440). Rescission unwinds the contract as if it had never existed, subject to the materiality requirement.
CA-specific example
- General InsuranceAn insured regularly burns trash in a dry field near a wooden shed; a stray spark ignit…
- State RegulationsUnder California law, if an insured violates a material warranty or other material prov…
- State RegulationsUnder California Insurance Code Section 338, if an insured intentionally and fraudulent…
- General InsuranceA life policy terminates because the insured failed to pay the premium when due. This t…
- State RegulationsUnder the law governing insurable events, which type of event may properly be insured a…
- General InsuranceThe principle of indemnity holds that an insured should be:
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