Common Legal Disputes Over Insurance Agreement

The video tutorial discusses key insurance contract provisions that often lead to disputes and litigation. It covers the incontestability clause, anti-lapse statutes, appraisal clauses, duty to preserve evidence, notice of claims, coinsurance, and dispute resolution clauses. These provisions are designed to protect the insured and clarify the responsibilities of both parties, but they can also be sources of legal contention.

What is the primary purpose of the provisions in insurance contracts?

• To simplify the contract language

• To protect the insured from unfavorable situations

• To reduce the number of claims

• To increase the insurer's profits

What does the incontestability clause prevent after a certain period?

• The insurer from denying coverage based on misrepresentations

• The insured from changing coverage

• The insurer from increasing premiums

• The insured from filing new claims

What is the role of anti-lapse statutes in insurance contracts?

• To allow insurers to cancel policies without notice

• To enable insured to change coverage anytime

• To increase the premiums automatically

• To require insurers to notify the insured before a policy ends

How do appraisal clauses help in insurance contracts?

• By eliminating the need for any valuation

• By letting insurers decide the value of the loss

• By involving third-party appraisers to determine property value

• By allowing the insured to set their own property value

What is the duty of the insured under the duty to preserve evidence clause?

• To sell the evidence to third parties

• To ignore any evidence related to the loss

• To preserve and provide evidence to the insurer

• To destroy all evidence of the loss

What is the purpose of coinsurance clauses in insurance contracts?

• To require the insured to have additional insurance

• To allow the insured to cancel other policies

• To let insurers avoid paying claims

• To reduce the insured's coverage

What is a common issue with dispute clauses in insurance contracts?

• They require disputes to be resolved through arbitration

• They often favor the insured

• They are always enforced by states

• They eliminate the need for any legal proceedings