2.2 Formation of the Insurance Contract

The formation's anatomy (the contract law's application): The offer-and-acceptance: the proposal form's craft (the prospectus's completion — the applicant's offer; the insurer's acceptance; the counter-offer's faces (the modified terms' acceptance — the premium's loading, the exclusions' addition)); The utmost good faith's duty at formation: the disclosure (the material facts' revelation — the facts a prudent insurer would want: the health-history, the prior-claims, the risk's circumstances); the representation (the proposal's statements — the true-and-fair answers); the breach's consequences (the voidness-or-avoidance — Unit 4's repudiation); The consideration: the premium's promise-and-payment (Unit 5's craft); The consensus-and-the risk's attachment: the agreement's meeting + the risk's commencement (the cover's start-date); The capacity-and-legality: the parties' competence (the insured's majority-and-sanity; the insurer's licensing — the illegal-insurer question); the insurable interest's requirement (the legality's anchor — the subject's lawful interest).