contract law: PRI - PRELICENSING

Which of the following would be covered by contract law?

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

Which of the following would qualify as an implied warranty in an insurance contract?

An oral representation by the applicant A warranty is a statement considered to be guaranteed to be true and becomes part of the contract. Representations in insurance contracts qualify as implied warranties.

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

Conditional

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?

Conditional A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies which put the burden of condition on either the insurer or the policyo

Representations are written or oral statements made by the applicant that are

Considered true to the best of the applicant's knowledge. Representations are statements made by an applicant that they believe to be true.

Which of the following best describes the policy nonrenewal?

Discontinuance of an insurance policy by the insured on the policy anniversary date.

What other term is used to refer to unintentional torts?

Negligence An unintentional tort is the result of acting without proper care. This is generally referred to as negligence.

During the grace period, the policyowner can

Pay a late premium without penalty. A grace period is the period of time specified in the policy that allows the policyowner to pay a premium after due date without penalty, or without policy lapsing.

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

Policy. According to CIC 380, the written instrument in which a contract of insurance is set forth is the policy.

When may a representation be withdrawn?

Prior to the issuance of the policy

The importance of a misrepresentation is determined by

The materiality of a given concealment. The materiality of a given concealment determines the importance of a misrepresentation

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

When an insurer's underwriter approves coverage