The insurance contract is a consensual contract, meaning that the contract is formed by a simple exchange of consents. However, the policyholder and the insurer will always benefit from having a written document as proof, especially if a dispute arises. Our legal expert reviews the three subscription methods generally used to conclude an insurance contract.
The pre-signed policy to subscribe to an insurance contract
The pre-signed policy is an insurance contract previously signed by the insurer and contains an offer to contract under the conditions described therein.
This type of subscription is generally only used for specific insurance contracts, where the nature and/or description of the risk are of little importance (for example, a legal protection contract). In the case of a pre-signed policy, the contract is formed upon the signature by the policyholder.
The coverage starts the day after the insurer receives the policy, this date must be communicated to the policyholder. The parties have the option to terminate the contract for a period exceeding 30 days within 30 days from the receipt of the policy by the insurer. This termination has an immediate effect when decided by the policyholder and takes effect 8 days after notification when decided by the insurer.
In practice, this means that if your insurer notifies you of their intention to terminate on December 31, the contract termination will occur on January 8, and you will no longer be covered from January 9.
The insurance application
The insurance application is a document by which the insurer, at the request of the policyholder, temporarily assumes the risk. The law states that the contract is formed upon the signature of the document by the policyholder, subject to the possibility of termination within 30 days for contracts longer than 30 days.
The insurance proposal
The insurance proposal is a document issued by the insurer, to be completed by the policyholder, and intended to inform the insurer about the nature of the operation and the facts and circumstances that constitute elements for assessing the risk.
This proposal has the particularity of not binding either the prospective policyholder or the insurer. If, within 30 days of receiving the proposal, the insurer has not notified either an insurance offer, the subordination of insurance to a request for investigation, or the refusal to insure, they are obliged to conclude the contract under penalty of damages.
In the event that the insurer, upon receipt of the proposal, sends an insurance offer to the prospective policyholder, this offer becomes irrevocable either during the set period or at least for a reasonable period.
In case of acceptance, the contract is formed upon receipt of this acceptance by the insurer, meaning when the insurer receives back the policy signed by both parties.