Contract law

Unilateral

In insurance policies, the insured is not legally bound to any particular action and the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

An insured suing the insurer for failing to provide promised benefits

Which of the following would be covered by contract law?

The completed application is submitted

In insurance, and offer is usually made when

The person must have at least completed secondary education

In terms of parties to a contract, which of the following does NOT describe a competent party?

The applicant has a prior felony conviction

In which of the following examples would a contract between an insurer and prospective insured be legal?

Concealment

A life insurance application is asking if the applicant has applied for any other life insurance within the past six months. The applicant states that he applied for $15,000 coverage from XYZ Co., but fails to mention that hundred $50,000 coverage with DEF Co. The applicant is guilty of

A fine up to $25,000

A person caught by letting provisions regarding misrepresentation could be subject to

Estoppel

ABC insurance company receives an incomplete application and issues the policy anyway. Six months later ABC realizes the missing information. What term is used that prevents ABC from forcing the policy owner to answer further questions.

6

According to the code, how many separate requirements should insurance policy?

Contract

And agreement that is enforceable by law is known as a/an

$535

And insurance policy specifies that it will pay $600 for specific class. The policy owner suffers a loss of $535 how much will the policy pay?

Aleatory

And insured pays $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

The insured will need a written consent of the insurer.

And insured wants to transfer his personal insurance policy to a friend. Under what conditions with this be possible?

Conditions

Because an insurance policy as a contract between the insurer and the insured in must conform to the state laws governing contracts which require all of the following elements EXCEPT ____________

Neglect on the part of insured to communicate all information knowing to be material to the insurer

Concealment as defined by the California insurance code is

Neglect on the part of insured to communicate all information known to be material to the insurer

Concealment as defined by the California insurance code is

Contracts of adhesion

Contracts that are prepared by one party and submitted to the other party on a take it or leave it bases are classified as

Contained in and referred to in the policy or other document signed by the insured

Every expressed warranty made ads or before the execution of the policy must be

Contains in and referred to in the policy or other document and signed by the insured

Every expressed warranty made at or before the execution of a policy must be

Express warranty

Factual statements about the insured or the risk in an insurance policy are considered

Can void a contract

If found material for underwriting, I miss representation

Three years

In addition to penalties, fines, and possible imprisonment for violating the provision relating to misrepresentation, The commissioner may suspend her license of such person for a period up to

Influence this information would have in forming an estimate of the advantages for the disadvantages to the contract

In determining how material a piece of information as to each party of a contract, the value is not determined by the event it's self, but slowly by which of the following?

unilateral

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

Concealment

The failure to disclose known facts is known as

The materiality of a given concealment

The importance of a misrepresentation is determined by

Conditional

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?

Both the insurer and the insured to rescind

The violation of a material warranty or other material provision of a policy allows

One sided, only one party makes an enforceable promise

What is a definition of a Uni lateral contract?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

What is a material misrepresentation?

If it is intentional and material

When would A miss representation on the insurance application be considered fraud?

Indemnity

Which insurance principle states that if a policy allows for greater compensation then the financial loss incurred, the insured may only receive benefits for the amount lost?

Exchange of unequal values

Which of the following best describes the aleatory nature of an insurance contract?

Aleatory

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of ask on the part of the insurance company?

Consider true to the best of the applicants knowledge

Representations are written or oral statements made by the applicant that are

The insurance financial rating

Which of the following does not need to be identified in an insurance policy?

Material misrepresentation

And insured stated on her application for life insurance that she never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?

Recession of a contract

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

UtMost good faith

Insurance contracts have unique characteristics not usually found in other types of contracts. They require each party to rely upon the representations of the other and reasonably expect the other is acting without attempt to conceal or deceive. This is known as

Recession of the policy

What is an injured party entitled to receive if an intentional concealment is discovered?

Negligence

What other term is used to refer to unintentional torts?

Concealment

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Concealment

When applying for an individual life insurance policy, and applicant states that he went to the doctor for nausea but fails to mention that he was also having severe chest pain's this is an example of

Prior to the insurance of the policy

When me a representation be withdrawn?

Implied warranties

Representations in insurance contracts qualify as

Counter offer

Which of the following is NOT a required elements of an insurance contract?

UtMost good faith

Which of the following terms refers to the ability of two parties to rely on one another?

Misdemeanor, a fine not to exceed $25,000, and/or a possible one year imprisonment

According to the California insurance code, any agent violating the regulations relating to misrepresentation will be charged with a

The amount of paid claims exceeds the premiums paid

All of the following are reasons and ensure or an insured would have the right to rescind a policy except

They may be altered or with John after the insurance of the policy

All of the following are true regarding representations except

Information the other party already knows

All of the following information must be communicated in an insurance contract except

Waiver

An insurance company receives an application with some information missing and issues the policy anyway. What is this called?

When an insurers underwriter approves coverage

In forming an insurance contract, when does acceptance usually occur?

Tort

What is a wrongful act or the violation of someone's rights that leads to legal liability called?