Page 33 - Life Assurance
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Questions for
Review and Discussion
1) “Subrogation is a windfall to the insurer.
It plays no part in rate schedules (or only a minor
one). Even as to negligent parties, it is arguable that
since the insurer is paid to take the risk of negligent
losses, it should not shift the loss to another.”
a) Do you agree with that statement either
in whole or in part? Explain.
b) State the general arguments for
including subrogation clauses in insurance
contracts.
2) “An insurer to change the wording of a
paid-up life insurance policy filed suit.”
The insured claimed that the company's general
agent signed an agreement, which would entitle the
insured to a paid-up L.E 7,000 policy on the
payment of only four annual premiums of L.E 322.28
each. Neither the policy nor the application therefor
referred to this written instrument.
a) Do you think the suit should be
successful? Why, or why not?
b) Upon what legal doctrines does your
decision rest.
97 Life41/life/life 08
Questions for
Review and Discussion
1) “Subrogation is a windfall to the insurer.
It plays no part in rate schedules (or only a minor
one). Even as to negligent parties, it is arguable that
since the insurer is paid to take the risk of negligent
losses, it should not shift the loss to another.”
a) Do you agree with that statement either
in whole or in part? Explain.
b) State the general arguments for
including subrogation clauses in insurance
contracts.
2) “An insurer to change the wording of a
paid-up life insurance policy filed suit.”
The insured claimed that the company's general
agent signed an agreement, which would entitle the
insured to a paid-up L.E 7,000 policy on the
payment of only four annual premiums of L.E 322.28
each. Neither the policy nor the application therefor
referred to this written instrument.
a) Do you think the suit should be
successful? Why, or why not?
b) Upon what legal doctrines does your
decision rest.
97 Life41/life/life 08
