LEGAL CONCEPTS OF INSURANCE
CAL-STATE EXAMS
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TABLE OF CONTENTS: LEGAL CONCEPTS OF INSURANCE
LESSON ONE — INSURABLE INTEREST 1
General - Purposes - Distinction Between Property and Life Insurance - Insurable Interest in Relation to Property Insurance Definition - Legal Interest v. Factual Expectancy - Current Case Law - When Insurable Interest Must Exist - Insurable Interest in Relation to Life Insurance - Insurance on One's Own Life - Insurance on the Life of Another - Family Relationships - Contractual Relationship - When Insurable Interest Must Exist - Assignment of a Life Insurance Policy - Consent of the Insured - Industrial Life Insurance - Standing to Raise Defense of Insurable Interest - Counter-Defenses to the Insurable Interest Doctrine.
LESSON TWO — DEFINITION OF RISKS
Unlawful Contracts - Policies in Violation of Statute - Policies in Violation of Public Policy - Policies Related to Unlawful Activity - Punitive Damages - Implied Exception for Intentional Conduct — Generally - Fortuitous Element - Express Exclusion for Intentional Conduct - Implied Exception for Normal Wear and Tear or Inherent Defect - Implied Exception for Friendly Fire - Definition of “Accident” - All Risk v. Specified Risk - Reasonable Expectations Rule.
LESSON THREE — PERSONS INSURED
Definition of Insured - Identification of the Insured - Endorsement - Omnibus Clause - Beneficiaries Under Life Insurance Policies - Interest of the Beneficiary - Common Disaster Clause - Beneficiary Who Predeceases the Insured - Effect of Divorce - Creditors as Beneficiaries and Assignees - Community Property - Disqualification for Murder - Facility of Payments Clause - Change of Beneficiary - Standing to Contest Change of Beneficiary - Assignments - Entire Policy - Property Insurance - Life Insurance - Reinstatement of Lapsed Policy - Incontestability Clause - Time of Reinstatement.
LESSON FOUR — WAIVER AND ESTOPPEL
Generally - Waiver - Methods of Communicating Waiver - Limitations on Waiver - Limitation in Regard to Facts - Limitation as to Coverage - Policy Limitations on Waiver - Estoppel - Limitation as to Coverage - Parol Evidence Rule - Limitation to Facts - Common Instances of Estoppel.
LESSON FIVE — MEASURE OF RECOVERY
Generally - Articles of Commerce - Unique Property - Market Value - Coinsurance - Other Insurance Clauses - Conflicts Between “Other Insurance” Clauses - Rights of Contribution Among Insurers - Valued Policies - Appraisal Clauses.
Application of Subrogation to Lines of Insurance - Life and Accident Insurance - Medical, Surgical, and Hospitalization Insurance - Casualty Insurance - Worker's Compensation - Remedies - Against the Insured - Division of Fund Recovered from Third Party - Defense to Subrogation - Defense of Insured - Conventional Subrogation.