Ch.2 Contract Law Quiz

Concealment as defined by the California Insurance Code is

Neglect on the part of insured to communicate all information known to be material to the insurer.

Untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called

material misrepresentations

In forming an insurance contract, when does acceptance usually occur?

when an insurer's underwriter approves coverage.

The violation of a material warranty or other material provision of a policy allows

Both the insurer and the insured to rescind.

What other term is used to refer to unintentional torts?

Negligence

The written instrument, in which a contract of insurance is set forth, is known as the

policy

An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of

Concealment

What is a wrongful act or the violation of someone's rights that leads to legal liability called?

Tort

Which of the following would be covered by contract law?

an insured suing the insurer for failure to provide promised benefits.

An intentional or unintentional concealment entitles the affected party to which of the following?

Rescission of a contract

The key factor of representation that allows the injured party to rescind the contract is

If the representation is false in a material point.

A contract between an insured and an insurance company which agrees to pay the insured for loss caused by specific events is

a policy