Life insurance is the most assignable of any type of insurance. The premium is consideration paid by an insured to an insurer for indemnifying the insured against certain peril. Premiums for life insurance are based on mortality tables, interest rates, and administrative expenses of the insuring firm. A person is entitled to a return of premium when there was over-insurance, insurer fraud, insured was ignorant of certain facts through no fault of their own, or the insurer did not incur any liability under the policy by any default of the insured except actual fraud. Representations and warranties are both part of an insurance contract.
Representation is an oral or written statement given by the insured.
The warranty is a statement by an insured that appears in the insurance policy and relates to the risk insured against. The right to rescind, abandon, or abrogate an insurance policy is called cancellation, which either party can do. Life Insurance Function Life insurance is a contract to pay a specified sum to a beneficiary or to the estate of the deceased when the insured dies. It protects against the risk of mortality. May be obtained for several of reasons.