Premium rates also depend on the characteristics of policyholders. For example, a person with a poor driving record usually has to pay more for auto insurance than someone with a good driving record. In addition, insurers are free to deny policies to those who pose an unacceptable risk. For example, most insurance companies do not offer life or health insurance to people diagnosed with a fatal illness. In post-middle-aged England, local labour groups came together to create “friendly societies,” precursors to modern insurance companies. Members of friendly societies have regularly contributed to a mutual fund used to finance member losses. Contributions were set without reference to a member`s age and without a clear indication of the rights that would be covered. In the absence of a risk forecasting and potential liability system, many of the first friendly companies were unable to settle their debts and many eventually dissolved. Insurance has gradually been considered a case best handled by a company in the insurance industry.
Studies published in the 1990s show that people have not already received insurance because of the risk of genetic disease. The prospect of widespread genetic discrimination worries many professionals in the medical and legal community. It is unfair to refuse coverage or to charge higher premiums on the basis of a potential risk of genetic diseases that the person cannot change. The benefit of most insurance contracts is that the insured pays premiums and contracts all other obligations prescribed by the contract, whereas the insurer`s primary obligation is to bear the losses, if any. Most insurance contracts, such as. B in-kind, liability and health insurance policies are compensation contracts for which the insurance company is only required to compensate for actual losses up to the insurance limits. However, some contracts, such as life insurance contracts. B, pay the nominal amount of the policy. In addition, the insured must pay the premium to the insurer, the other is not obliged to pay the premium until damage occurs, but if damage occurs, the insured must start the benefit before the insurer has to do something. In most countries, an administrative authority created by the state legislator develops rules for the details of the procedure that are lacking within the legal framework. To make transactions in a state, an insurer must obtain a license through a registration process. This process is usually managed by the state management authority.
The application of insurance rules and statutes may also be entrusted to the same public authority. For each valid contract, there are 4 conditions, including insurance contracts: the instant case shows once again the dangers of the current complex structuring of insurance policies. Unfortunately, the insurance industry is addicted to the practice of constructing a condition or exception in the form of a Babel language tower in the policies. We join other courts and deplore a trend that plunges policyholders into a state of insecurity and places the task of resolving it on justice. We reaffirm our advocacy for clarity and simplicity in policies that serve such an important public service.  To enter into an insurance contract, both parties must be legally able to honour what is promised. The insured must be in good health and legally binding and the insurance provider must meet all the licensing requirements of the state in which the insurance is offered.