2. Chapter 6
The acceptance & the issuance of the
policy of insurance
Complete Offer + Acceptance = Complete Insurance
.Contract
Insurance contract is one of the formal •
contracts , written in an instrument called
.” ”Policy

4. The Policy
The policy contains • All terms of
.Agreements
Description of the
risk subject to the
. insurance
Circumstances
.affecting the risk

5. The Policy
According to Art 750 of the Egyptian •
civil code it is considered as void the
following terms if provided in the
: insurance policy
All the printed conditions which are not -1
prominently projected and which are related to one
.of the conditions leading to the annulment of right
An arbitration clause, if it is set in the policy as -2
part of its printed general conditions, and not in the
form of a special agreement independent from the
.general conditions
All other arbitrary conditions, the violation -3
of which has had no effect on the occurrence
.of the insured accident

6. The methods of Acceptance

7. The methods of Acceptance
Issuance of Conduct of
insurance the
policy insurer
Receiving
Formal
the
Acceptance
Premium

8. The methods of Acceptance
Formal
Acceptance
It means that the parties intended to be bound prior •
to the time the policy is delivered, delivery is not
.essential
The contract of insurance takes effect without •
delivery ,it takes effect when the insurer declares to
.be bound either orally or in writing

9. The methods of Acceptance
Issuance of
insurance policy
Issuance of insurance policy = Insurer has accepted the •
proposal form there is no need that the policy should
.be materially delivered
The difficulty arises if the contract is manually delivered or •
.(constructively delivered ( material delivery
The policy is considered as delivered & accepted regardless •
. the type of the delivery once the delivery is valid

10. : The conditions of valid delivery are
A- The intention of the parties executing the policy to
.give it legal effect as a complete legal instrument
B- This intention must be evidenced by some words or
acts indicating that the insurer has put the instrument
beyond his legal control , not necessarily beyond his
.physical control
C- . The insured must be informed about this intention
Dr‘s Point Of View: the conclusion of the contract •
in this case wouldn‘t be affected if the insured didn‘t
treat the delivery as an acceptance, or he negotiated.
But if the policy departs from the proposal by
introducing a new term , it won‘t be considered as an
acceptance but a counter offer needs to be accepted by

11. The methods of Acceptance
Receiving
the
premium
In the case of the insurer has accepted to receive •
the premium and retained it –Although the policy
hasn‘t issued yet– this indicates implicit acceptance
.of the proposal form
In such case, the insurer isn‘t entitled to refuse the •
issuance of the policy and he will be liable to pay
.damages at the happening of the risk to the insured

12. The methods of Acceptance
Conduct of
the
insurer
Sometimes, in spite of the absence of an issued •
policy and payment of the premium by the insured, the
acceptance of the insurer can be concluded from the
surrounding circumstances such as: 1- The mere
demand for the premium by the insurer , 2- The
nomination of an expert to evaluate the damages
.suffered by the insured

13. The Effect Of Acceptance
Thus by the acceptance, the parties become •
bound by the contract, and can‘t withdraw
. from, except by mutual consent
The contract becomes binding from the date •
of the insurer acceptance. And the insured
becomes obliged to pay the premium fixed by
. the terms of the contract
For the insurer it is his duty to issue the •
policy and to accept the premium when it is
paid, and to pay damages suffered by the
. insured

15. Cover note is one of the •
.formal contracts
This statement is false, because,-
Issuing the cover note in a formal
document is not necessary, it might
be issued informally by sending a
letter to the insured by the company
.head office

16. the insurer may intimate his •
rejection of the proposal form to
.the insured through phone
This statement is false, because the -
insurer is obliged to intimate his
rejection of the proposal form to the
.insured in writing only not orally

17. In all cases, the cover note of a •
fixed period comes to an end by
.the expiration of this period
This statement is false, because it is not -
necessary that the cover note remain in
force during its whole fixed period, since it
may come to an end in an earlier time by
the acceptance of the insurer )issuing the
policy(, or by the declaration of the
rejection of the proposal form by the
. insurer to the insured inwriting

18. Acceptance of the insurer is •
the only way to end the cover
.note
This statement is false, because the cover-
note comes to an end by three ways. The
first one is the acceptance of the insurer
)Represented in issuing the policy(. The
second one is the expiration of the period
specified in the cover note without issuing
the policy )implicit rejection(. The third
one is the declaration of the rejection of
the proposal form by the insurer to the
. insured inwriting

19. the cover note is one of the •
.insurance contract components
This statement is false, because the cover-
note represents an insurance contract and
determines the rights and duties of its
parties in the event of loss or injuries,
taking place during its validation.
Therefore it is not one of the insurance
contract components but it is
.a separated independent contract