Elements of an Insurance Contract
Like any other contract, an insurance contract must have consent of the parties, object and cause or consideration. The parties who give their consent in this contract are the insurer and insured. The object of the contract is the transferring or distributing of the risk of loss, damage, liability or disability from the insured to the insurer. The cause or consideration of the contract is the premium which the insured pays the insurer.
Additional Element of an Insurance Contract
Insurable Interest. This means that the insured possesses an interest of some kind susceptible of pecuniary estimation.