The insurance contract is a consensual contract, meaning that the contract is formed by a simple exchange of consent. However, the policyholder and the insurer will always have an interest in having a written document as proof, especially if a dispute arises. Our legal expert discusses the three methods generally used to conclude an insurance contract.
Pre-signed policy for subscribing to an insurance contract
A pre-signed policy is an insurance contract previously signed by the insurer and containing 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 not significant (for example, legal protection insurance). In the case of a pre-signed policy, the contract is formed upon the policyholder’s signature.
The coverage starts the day after the insurer receives the policy, and this date must be communicated to the policyholder. Both parties have the right to terminate the contract within 30 days after receiving the policy, with immediate effect if terminated by the policyholder and within 8 days after notification if terminated by the insurer.
In practice, this means that if your insurer notifies you of their intention to terminate on December 31st, the termination of the contract will occur on January 8th, and you will no longer be covered from January 9th.
Insurance application
An insurance application is a document by which the insurer, at the request of the policyholder, temporarily takes on the risk. The law states that the contract is formed upon the policyholder’s signature of the document, subject to the possibility of termination within 30 days for contracts exceeding 30 days.
Insurance proposal
An insurance proposal is a document issued by the insurer, to be filled out by the policyholder, intended to inform the insurer about the nature of the operation and the facts and circumstances that are relevant for assessing the risk.
This proposal does not bind either the prospective policyholder or the insurer. If, within 30 days of receiving the proposal, the insurer has not notified either an insurance offer, a request for investigation, or a refusal to insure, they are obliged to conclude the contract under penalty of damages.
If the insurer, upon receiving the proposal, sends an insurance offer to the prospective policyholder, this offer becomes irrevocable either for the specified period or at least for a reasonable period.
In case of acceptance, the contract is formed upon the insurer’s receipt of this acceptance, meaning when the insurer receives back the policy signed by both parties.
