Insurance and Contract Law Fundamentals

This assignment explores fundamental concepts in insurance and contract law. It covers topics like the distribution of personal insurance products, the structure of Alberta's Provincial Court system, offer and acceptance in contract formation, and essential elements of a valid contract under Quebec's Civil Code. The assignment delves into legal principles and provides specific examples to illustrate these concepts.

Running head: INTRODUCTION TO INSURANCE 1
Introduction to Insurance
Name:
Institutional Affiliation:

INTRODUCTION TO INSURANCE 2
Introduction to Insurance
Question 1
Distribution of personal insurance product is as follows:
 Consumers must be made aware of the existence of the product so that they can make
personal decision about it (E-Distribution of Insurance Products, 2013).
 Consumers should be able to freely access the information that they can use to choose the
insurance provider and confirm its regulation.
 Insurer should provide important information about the product such as the targeted
customer, premiums to be paid, to the consumers to help them make well-versed
decision.
 Online insurance providers should guarantee the security of the information given by the
consumer.
 Consumer should ensure to have a copy of the application and the contract which they
can use as a reference.
 Consumer should be given ample time to verify their information before sending the
application.
Question 2
Structure of Alberta Provincial Court System contains four divisions:
 Criminal Division where all accused must first appear in the provincial court
where a judge then decides if a person should be put in custody or await a trial
(The Court System in Alberta, 2017).

INTRODUCTION TO INSURANCE 3
 Family and Youth Division deals with range of family issues.
 Civil division solves claims that entails amount of money of $50000 or less
 Lastly traffic division deals with traffic violations.
Question 3
In order for an offer to form an agreement, it must be accepted in accordance with its
precise terms (Merrit, 2017). Brown’s acceptance of the offer thus makes it a contract. In this
case, however, Robert Brown can revoke the acceptance since the terms of the offer did not
exactly match the original offer. John Smith did not correct the clerical error made by the
newspaper hence breaching the contract.
Question 4
Elements of valid contract under Quebec include:
i. Consent - includes offer and acceptance (Contract Law, 2017).
ii. Capacity to contract-minors and persons with disabilities are excluded from
contract, minors may be represented by a parent or an adult in charge of them and
their interest should be considered when doing so while the disabled can be
represented by a person of their choice who is of sound mind.
iii. Cause of contract-the reason why the parties enter into a contract
iv. Object of contract-every contract must be legally binding
Articles that relate to each element are:
i. Article 1433 states that a contract creates responsibility and in some cases
modifies them.

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ii. A contract legally binds the parties that have agreed to it according to
article 1434.
iii. 1439 states that a contract may not be revoked or terminated except on
legal grounds recognized by both parties.

INTRODUCTION TO INSURANCE 5
References
Contract Law – Civil Code of Quebec - Study 8 CIP. (2017). Cipnotes.blogspot.co.ke. Retrieved
6 November 2017, from http://cipnotes.blogspot.co.ke/2011/07/contract-law-civil-code-
of-quebec-study.html
E-Distribution of Insurance Products: the CCIR Publishes its Recommendations. (2013). Lavery.
Retrieved 6 November 2017, from http://www.lavery.ca/en/publications/our-
publications/1646-e-distribution-of-insurance-products-the-ccir-publishes-its-
recommendations.html
Merrit, C. (2017). If a Company Is Advertising a Price Wrong, Are They Responsible for the
Mistake?. Smallbusiness.chron.com. Retrieved 6 November 2017, from
http://smallbusiness.chron.com/company-advertising-price-wrong-responsible-mistake-
73117.html
The Court System in Alberta | Calgary Legal Guidance. (2017). Calgary Legal Guidance.
Retrieved 6 November 2017, from http://clg.ab.ca/programs-services/dial-a-law/the-
court-system-in-alberta/