Insurance agents are, above all else, salespeople who are there to make sales. They will approach you like any other salesperson selling you luxury items. Insurance, whether auto, life, or health, is in some cases mandatory and in other cases needed as determined by the insured.
Because it is the insurance agent’s job to make sales, you should know as much as possible about the insurance you are purchasing, the legality requirements to carry insurance. You should also know everything there is to know about the insurance you need and the costs. The more prepared you are, the less likely you will purchase insurance you don’t need.
Here is some helpful insurance information, so you do not buy anything you don’t need when purchasing a policy.
What is an insurance policy?
The insurance policy is the manifestation of the most important agreement between clients and insurers. In it, the rights and obligations of both parties are regulated. We tell you everything you need to know about this document.
The time has come. You and your insurer have reached an agreement in the application and the proposal, the two main documents of the insurance contract. Therefore, the printing and subscription of the policy are carried out so that the treatment can be maintained over time and adapts to current legislation.
You should know that an insurance policy is not any document. It is the essential agreement between the insured and insurer so that all information we know about it will be especially useful.
A document covered by the legality
If the insurance policy stands out for anything, it is because of the extensive number of rules surrounding it. All these articles integrated into the Insurance Contract Law ensure, mainly, the protection of the client. So that insurers do not take advantage of the ignorance and innocence of the policyholder, the law guarantees a series of rules that all companies must comply with.
On the one hand, according to the law, this document must always be executed in writing, and the insurer must deliver an original copy of it to the new insured. The regulations leave very little room for the parties’ creativity to protect you as a customer when introducing clauses in the policies. Everything that is regulated in this law is what must be established in the document without exceptions.
To further defend the insured’s rights, the law also allows the Public Administration to control and supervise the contractual content of the policies. In this way, the policyholder will not be unprotected at any time.
What does it mean to establish an insurance policy with the insurer?
Conveniently, we know the functions and consequences that the policy of any insurance that we are going to hire will imply. It helps in having a broader view of what this essential document entails.
Birth of the contract
Suppose something indicates an insurance policy that is the birth of the contract between both parties. When the policyholder and insurer sign the document, the insurance is perfected. But this does not end here. In the case of paying the corresponding premium, at that time, the effects thereof will arise.
The policy is proof in writing that the insurance we have contracted exists. In this way, possible frauds that could affect the client are avoided. If we do not know if our contract is still valid or not, we have it very easy: we have to look at the paid receipt of the current annuity.
The essential function that we have already commented on the policies is the regulations. Why? Because, in it, the rights and obligations of the insurance we have contracted are detailed. What is written in the policy is so important that they have the force of law for the parties involved in the contract?
Details the pre-existence of the insured objectives
Under the Insurance Contract Law, the policy must state the insurance objectives of the companies. The presumption of pre-existence will favor the insured when more reasonable evidence cannot be provided reasonably.
If the insurance company has the legal form of mutual, the policy grants the mutual policyholder status, as long as they are not reflected otherwise in the document.