(Life) 2 - Legal Concepts
What is the consideration given by an insurer in the Consideration clause of a life policy?
Promise to pay a death benefit
The part of a life insurance policy guaranteed to be true is called a(n)
warranty
When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have
insurable interest in the proposed insured
The Consideration clause of an insurance contract includes
the schedule and amount of premium payments
When must insurable interest be present in order for a life insurance policy to be valid?
At the time of application
Insurance policies offered on a "take it or leave it" basis are considered what?
Contracts of Adhesion
Who makes the legally enforceable promises in a unilateral contract?
Insurer
Which of these arrangements allows one to bypass insurable interest laws?
Investor-Originated Life Insurance
Which of these is considered a statement that is assured to be true in every respect?
Warranty
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called
representations