L2 - Legal Concepts of the Insurance Contract

When must insurable interest be present in order for a life insurance policy to be valid?

at the time of application

Which of these require an offer, acceptance, and consideration?

Contract

Insurance policies offered on a "take it or leave it" basis are considered what?

Contracts of Adhesion

Which of these is NOT a type of agent authority?

Principal. Agent authority is what an agent is authorized to do on behalf of his company. The three types of agent authority include express, implied, and apparent authority.

The Consideration clause of an insurance contract includes

The Consideration clause of a Life or Health policy includes the schedule and amount of premium payments.

Which of these is considered a statement that is assured to be true in every respect?

Warranty

Which of these is NOT considered to be an element of an insurance contract?

negotiating

Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called

representations

The part of a life insurance policy guaranteed to be true is called a

warranty