Ecuador
Answer ... Insurance contracts are classified in the Commercial Code into two types: property insurance and people’s insurance. The former encompasses:
- tort insurance;
- fire insurance;
- liability insurance; and
- transportation insurance.
The second area includes life insurance and medical insurance.
Ecuador
Answer ... Ecuadorian law recognises different kinds of insurance contracts, as long as they contain the following mandatory clauses:
- the start and finish dates;
- the details of the insurer;
- the details of the insured;
- a (valid) insurable object;
- an insurable risk;
- the insurance cost or premium;
- the obligation of the insurer to pay the claim fully or partially, depending on the extent of the insured event;
- the payment method; and
- the insured amount or the insurer’s liability limit.
For medical insurance contracts, the law requires additional mandatory clauses:
- an obligation to cover catastrophic and chronic diseases if they arise;
- obligatory coverage for medical emergencies, without limitation of which hospital, clinic or medical provider the client chooses to go; and
- free of deductible coverage for certain diseases and medical conditions determined by the heath authority.
Ecuador
Answer ... In general, under Ecuadorian law, to assume obligations:
- a person must have legal capacity and express consent; and
- there must be a licit object and cause.
The only formality required by law is that the insurance contract be written and signed by the parties. Two copies must be signed, one by each party.
Ecuador
Answer ... There are no procedural requirements required by law. The only requirement that insurers must observe is to retain a written and signed document in their files.
Ecuador
Answer ... Before the contract is concluded, the insured must declare his or her risk conditions in a questionnaire given by the insurer. If the insured lies or intentionally hides important data, the contract may be declared invalid. The insurer must start an administrative process before the Superintendency of Companies and Securities to declare the contract void.
The insured must pay the insurance premium within 30 days of signing of the contract; if he or she fails to pay at this time, the insurer can deny coverage until the premium is paid.
Ecuadorian consumer law requires that all terms be written in Spanish and in plain language, without unnecessary technical terminology. The insurer must make clear:
- the final cost of the insurance;
- the base price; and
- a detailed description of all additional costs.
If the insurer fails to comply, the insured can terminate the contract immediately, without further process.