16-1 THE NATURE OF COVER AND LOSS

In certain circumstances, sometimes called the insured event and defined by the insurance contract, the insurer promises to pay money (or benefit in kind) to the insured. In terms of the general law of contract the existence of the stated circumstances is a condition precedent to performance of the insurer’s promise, and the promise itself is a conditional promise.1 In terms of insurance contract law the insurer’s promise is cover. In the stated circumstances there are usually at least three elements.