One requirement for the formation of a valid insurance, Finance Basics

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One requirement for the formation of a valid insurance

One requirement for the formation of a valid insurance contract is that the contract must be for a legal purpose.

a. Identify three factors, other than the legal purpose requirement, that are essential to the formation of a binding insurance contract.

b. Explain how each of the three requirements in part (a) is fulfilled when the applicant applies for an auto insurance policy.

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Finance Basics: One requirement for the formation of a valid insurance

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