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Civil law. Part II. Concept and characteristics of an insurance contract. Parties to the contract (most important)

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72. CONCEPT AND CHARACTERISTICS OF THE CONTRACT OF INSURANCE. PARTIES TO THE AGREEMENT

On insurance contract one side (insured) brings to the other side (to the insurer) contractual fee (insurance premium),

and the insurer undertakes upon the occurrence of an event stipulated by the contract (insured event) pay the insured or other person (to the beneficiary), in whose favor an insurance contract, insurance compensation or insured amount has been concluded.

Characterization contract: it is paid, bilaterally binding, it can be real or consensual.

By the parties contracts are the policyholder and the insurer.

The insured - this is a legal or capable individual who has an insurable interest and enters into relations with the insurer by virtue of law or contract. On the side of the policyholder, in addition to himself, a third party (or several persons) may simultaneously act - beneficiary - a person in favor of whom, with his consent, the policyholder has concluded an insurance contract.

Insurer - this is a legal entity of any organizational and legal form that has a license to insure the relevant person (Article 938 of the Civil Code).

Participants of insurance relations may be:

▪ insurance agents - individuals or legal entities acting on behalf of the insurer on his behalf;

▪ insurance brokers - individuals or legal entities - entrepreneurs carrying out insurance activities on their own behalf and representing the interests of the policyholder or insurer (they are intermediaries);

▪ insurance pool - a voluntary association of insurers in order to ensure the financial stability of insurance operations on the terms of joint liability of its participants for the fulfillment of obligations under insurance contracts. In addition to the insurance itself, the following actions can be carried out during insurance:

▪ double insurance - this is insurance of the same interest against the same dangers from several insurers in the case where the total insured amount exceeds the insured value;

▪ reinsurance - insurance by one insurer (reinsurer) from another insurer (reinsurer) under the terms of the risk of fulfillment of all or part of the obligations to the insured determined by the contract;

▪ mutual insurance - this is insurance of property and property interests based on the pooling of funds of citizens and (or) business entities.

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