Page 57 - CFPA-SCR-Award in General Insurance W01_2018-19_Neat

3

Contract and agency Chapter

Contents Syllabus learning 3
outcomes

Learning objectives
Introduction
Key terms
A Contract law 3.1
B Intention to create legal relations 3.1
C Capacity to contract 3.1

D Offer and acceptance 3.1
E Consideration 3.1
F Cancellation of insurance contracts 3.2
G Agency 3.3, 3.4, 3.5
H Insurer–intermediary best practice 3.6
Key points
Answers
Self-test questions

Learning objectives

After studying this chapter, you should be able to:
• define a contract and apply the definition to an insurance contract;
• list the essentials of a valid contract;
• describe the characteristics of a valid offer;
• compare conditional and unconditional acceptance;
• state how contracts of insurance can be terminated;
• apply the rules of consideration to contracts;
• explain the contractual capacity of minors, persons with mental health conditions and bankrupts;
• describe the ways of creating an agency;
• describe the relationship between the agent, insurer and insured;
• describe the ways by which agency may be terminated; and
• describe the areas that should be included in an agency agreement between an insurer and
intermediary.