Contract Law (Primerica)

In addition to penalties, fines, and possible imprisonment for violating the provision relating to misrepresentation, the Commissioner may suspend the license of such person for a period up to

3 years

According to the Code, how many separate requirements should an insurance policy have?

6

Which of the following best defines an insurance policy?

A contract between an insured and an insurer that guarantees payment for loss caused by a specific event.

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

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

An oral representation by the applicant

How is the premium in an insurance policy determined?

By multiplying the rate by the number of units of insurance purchased

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

Every expressed warranty made at or before the execution of a policy must be

Contained in and referred to in the policy or other document and signed by the insured.

Factual statements about the insured or the risk in an insurance policy are considered

Express warranty.

Representations in insurance contracts qualify as

Implied warranties.

All of the following information must be communicated in an insurance contract EXCEPT

Information the other party already knows.

When may a representation be withdrawn?

Prior to the issuance of the policy