Chapter 2 Legal Concepts
Insurance policies are offered on a take it, or leave it basis, which make them
Contracts of Adhesion
Insurance policy are offered on a take it, or leave it basis, which make them
Contracts of Adhesion
Which of these arrangements allows one to bypass insurable interest laws?
Investor-originated life insurance
Which of these is NOT a type of agent authority
Principal
Statements made on an insurance application that are believed to be true to the best of the applicants knowledge are called
Representation
Which of the following best describes a warranty?
Statement guaranteed to be true
The part of a life insurance policy guaranteed to be true, is called a
Warranty
In regards to representations or warranties, which of these statements is true?
If material to the risk, false representations will NOT void a policy
One must enable interest exist for a life insurance contract to be valid?
Inception of the contract
A life insurance policy would be considered a wagering contract without
Insurable interest
A life insurance policy would be considered a wagering contract without?
Insurable interest
When third-party ownership is involved, applicants, who also happen to be stated, primary beneficiary are required to have
Insurable interest in the proposed insured
A policy of adhesion can only be modified by whom?
Insurance company