Insurance chapter 3( legal concepts)
When must insurable interest exist for a life insurance contract to be valid?
At the time of application
Which of these is true regarding the exchange of consideration among parties involved in an insurance contract?
Can be unequal
The powers directly given to a producer in an agency contract are called
Express
What happens when an initial offer is answered with a counteroffer
Initial offer is void
An insurance contract may be voided if a misrepresentation found on the application is determined to be
Material
The following are all elements of a legal contract EXCEPT
Recorded evidence
During the application process, a statement made by an application that becomes part of the contract is considered to be a(n)
Warranty
An insurance company can be liable for a producer's unauthorized acts
When the agency contract is vague concerning the authority given
What qualifies as acceptance of an insurance contract offer?
the issued policy
Which of these do NOT indicate the presence of insurable interest in a life insurance contract?
Lifelong friendship
Who would be the most likely party for legally entering into a contract?
Small employer
All of these statements correctly describe an aleatory contract EXCEPT
Only one party makes any kind of legally enforceable promise
An insurance application requires an application to make a full,accurate disclosure of the risk factor involved. Using this criteria,an insurance policy is considered what type of contract
Contract of utmost good faith
XYZ insurance company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums?
Implied
In which way are insurance policies said to be aleatory?
Involves the potential for the unequal exchange of value
An arrangement where an individual is authorized to act on behalf of another person or company is sectioned through
Law of agency
Which element of a contract constitues a proposal by one party to another?
Offer
Insurable interest involves what assumption?
One person benefits from the continuation of another's life
What is the insurer responsible for when a producer is acting within the scope of authority granted in the agency contract?
Responsible for acts by the producer that are authority only
An insurance company's voluntary refusal to enforce a contract's provision is called a(n)
Waiver