Chapter 2

Promise to pay a death benefit

What is the consideration given by an insurer in the Consideration clause of a life policy?

negotiating

Which of these is NOT considered to be an element of an insurance contract?

The insurance company

A policy of adhesion can only be modified by whom?

Insured

If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of?

conditional

Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid.

Contracts of Adhesion

Insurance policies offered on a "take it or leave it" basis are considered what?

Representations

Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called

the schedule and amount of premium payments

The Consideration clause of an insurance contract includes

Warranty

The part of a life insurance policy guaranteed to be true is called a

Contract

Which of these require an offer, acceptance, and consideration

Insurer

Who makes the legally enforceable promises in a unilateral contract?

At the time of application

When must insurable interest be present in order for a life insurance policy to be valid?

insurable interest in the proposed insured

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have

Investor-Originated Life Insurance

Which of these arrangements allows one to bypass insurable interest laws?