Contract Law

Representatives

Statements made by the applicant on an insurance application are considered:

contract of adhesion

When one party constructs a contract and the other party has no input, it Is known as:

Warranty

Which statement made by the insured automatically voids the insurance coverage if not true?

contract of adhesion

an insurance contract is a legally binding contract. Which of the following best describes the insured must accept or reject all of the policy provisions?

arson

which of the following would be a moral hazard?

person confined to hospital bed due to a heart attack

which of the following would be considered competent to enter to contract?

hazard

A banana peel on the floor of the grocery store on which a person could slip and fall is :

the contract is enforceable by the insurer

All of the following are characteristics of an insurance contract, EXCEPT:

Both parties must sign the contract (a binding contract can be verbal)

All of the following are requirements for a contract to be legally binding, EXCEPT:

an offer and acceptance competent parties legal purpose

All of the following are requirements of a legally binding contact:

consideration is something of value which is required of both parties, the insured must adhere to the terms of the contract without negotiation, insurance contracts are enforceable by the insured.

All of the following statements are true regarding an insurance contract:

contract of indemnity

An insurance contract is a legally binding contract. Which of the following best describes a policy concept which allows the insured to be reimbursed without making a gain?

1.Contract of utmost good faith 2. aleatory contract 3. contract of adhesion

An insurance contract is all of the following:

Contract of utmost good faith

An insurer must rely on the truthfulness and integrity of the applicant. This is called: