Chapter 2 Study Test

Any ambiguities in a P&C policy will be resolved in favor of the policyowner because the policy is a(n)

Contract of Adhesion

In purchasing an insurance contract, the applicant must accept the contract as written. This type of contract is referred to as a(n)

Contract of Adhesion

A binder can expire on all of the following EXCEPT

Date of application

Which of the following principles states that in forming an insurance contract, both parties have a responsibility to the other

Doctrine of Utmost Good Faith

A person who has responsibility for the financial wellbeing of another is a(n)

Fiduciary

A binder is a(n)

Interim insuring agreement

An incorrect statement made intentionally on a Personal Auto insurance application is a

Misrepresentation

Which of the following is NOT true regarding consideration in a P&C policy

Part of the company's consideration is the payment of a claim

With regard to insurance, the term consideration means

The premium and the statements on the application

Which of the following terms indicates that an insurance contract contains the legally enforceable promises of only one party

Unilateral