Legal Concepts (chapter 2) part 2

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

Promise to pay a death benefit to a named beneficiary

which of these is not a tyupe of agent authority:

ans: Principal

if a contract of adhesion contains complicated language to whom whould the interpretation be in favor of:

ans: insured

taking receipt of premiums and holding them for the insurance company is an example of:

ans: fiduciary responsibility

a life insurance policy would be considered a wagering contract without:

ans: insurable interest

Which of the following consists of an offer, acceptance, and consideration?

contract

All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT:

ans: Bilateral

a life insurance arrangement which circumvents insurable interest statutes is called:

ans: Investor-Originated Life Insurance

which of the following best describes a warranty:

ans: Statements guaranteed to be true

a policy of adhesion can only be modified by whom:

ans: The insurance company

Life and health insurance policies are:

ans: Unilateral contracts

Which of these is considered a statement that is assured to be true in every respect?

ans: Warranty

a contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of

ans: adhesion

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

ans: conditional

which of these is not considered to be an element of an insurance contract:

ans: negotiating

Inurance policies are considered aleatory contracts because:

ans: performance is conditioned upon a future occurrence

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

ans: representations

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

ans: warranty

At what point does an informal contract become binding?

ans: when one party makes an offer and the other party accepts that offer

in regards to representations of warranties which of these statements is true

if material to the risk, false representation will avoid a policy

if a contract of adhesion contains complicated language to whom would the interpretation be in favor of?

insured