Chapter 2 Study Test
Any ambiguities in a P&C policy will be resolved in favor of the policyowner because the policy is a(n)
Contract of Adhesion
In purchasing an insurance contract, the applicant must accept the contract as written. This type of contract is referred to as a(n)
Contract of Adhesion
A binder can expire on all of the following EXCEPT
Date of application
Which of the following principles states that in forming an insurance contract, both parties have a responsibility to the other
Doctrine of Utmost Good Faith
A person who has responsibility for the financial wellbeing of another is a(n)
Fiduciary
A binder is a(n)
Interim insuring agreement
An incorrect statement made intentionally on a Personal Auto insurance application is a
Misrepresentation
Which of the following is NOT true regarding consideration in a P&C policy
Part of the company's consideration is the payment of a claim
With regard to insurance, the term consideration means
The premium and the statements on the application
Which of the following terms indicates that an insurance contract contains the legally enforceable promises of only one party
Unilateral