contract law quiz 2

according to the code, how many separate requirements should an insurance policy have?

6 -the parties to the contract -the property or person being insured -a statement of the insurable interest that exists if the insured is not the owner -the risk being covered -the time period during which the policy will be in force or continue -the stated premium or manner to calculate premium

a contract between an insured and an insurance company which agrees to pay the insured for loss caused by specific events is?

a policy

the act of revoking or terminating an insurance policy is called?

cancellation

all of the following must be specified in an insurance policy except?

expect: the financial rating of the insurer -the parties between whom the contract is made -the risks insured against -the period during which the insurance is in force

when would a misrepresentation on the insurance application be considered fraud?

if it is intentional and material

representations in insurance contracts qualify as?

implied warranties

during the grace period, the policy owner can?

pay a late premium without penalty -grace period is the period of time specified in the policy that allows the policyowner to pay a premium after due date without penalty, or without policy lapsing.

if only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

unilateral -in a unilateral contract, only one of the parties to the contract is legally bound to do anything.

A life insurance application is asking if the applicant has applied for any other life insurance within the past 6 months. The applicant states that he applied for $15,000 coverage from xyz.co, but fails to mention the $150,000 coverage with def co. The applicant is guilty of?

concealment -according to cic 380, neglecting to communicate that which a party knows and ought to communicate is concealment.

something of value exchanged between the insurer and the insured is considered?

consideration -is something of value that each party to an insurance contract gives to the other.

an intentional or unintentional concealment entitles the affected party to which of the following?

rescission of a contract

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 -conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed.