Insurance case studies Essay Example | Topics and Well Written Essays - 500 words - 1

indemnification policy case studies - Essay ExampleI would not approve Mr. Farids application for income protection insurance policy because he already had a heart valve disorder. Considering the nature of his job and the insurance cover he is taking, I would not accept his application because he does not abide by the principle of utmost intimately faith. Also, Mr. Farid provides information that is not in accordance with his daily tasks.Prudent Insurance Inc. should deny the claim and not pay Mr. Farid. Mr. Farid took advantage of the brokers lack of knowledge about his job description and the dissimilar tasks that he executes. Mr. Farid does not obey the doctrine of utmost good fait, and even says he is a coach at general merchandise Selling Company. The policy compensates the insured against accident and convalescentness that makes him or her to nullify work. In the case of Mr. Farid, his condition may have resulted form the fact that his heart valve was already ill at the time he was taking the insurance policy. He did not stop working as a result of the insured risks. The number of activities Mr. Farid submitted, with their corresponding hours are not enough to cause him reverse his job.The principle of utmost good faith requires the insured to disclose all material facts to the insurer or broker. This applies regardless of the fact that the insurer asked specific questions or not. Mr. Green is bound by this doctrine of insurance to have provided all details concerning himself, including a domestic dispute that took place in January 2009. The contract rectitude requires the policyholder to disclose all information particularly that which may affect the decision of the prudent insurer (Skipper & Kwon, 2007). The investment banker would have reconsidered accepting to cover Mr. Green, as well as the amount of premium to charge on the risk (UNLOCK, 2011). Also, the underwriter may rule the contract null and the