Contract Law
The violation of a material warranty or other material provision of a policy allows
Both the insurer and the insured to rescind
What is a material misrepresentation?
Concealment
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.
What is an injured party entitled to receive if an intentional concealment is discovered?
Rescission of the policy
The act of revoking or terminating an insurance policy is called
cancellation
A contract between an insured and an insurance company which agrees to pay the insured for loss caused by specific events is
A policy
In insurance, an offer is usually made when
An applicant submits an application to the insurer
Representations are written or oral statements made by the applicant which
Are considered true to the best of the applicant's knowledge.
Which of the following is NOT a requirement element of an insurance contract?
Counteroffer
Which of the following best describes the policy non renewal?
Discontinuance of an insurance policy by the insured on the policy anniversary date.
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Good faith
The key factor of representation that allows the injured party to rescind the contract is
If the representation is false in a material point. (If a representation is false in a material point the injured party is entitled to rescind the contract from the time the representation becomes false.)
Which of the following does NOT need to be identified in an insurance policy?
Insurer's financial rating
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
Representations in insurance contracts qualify as
implied warranties