Chapter 2 Exam Legal concepts

Unilateral, Aleatory, Adhesion

All of these are considered to be typical characteristic describing the nature of insurance.

Which of the following consists of an offer, acceptance, and consideration?

Contract

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

Contract

Insurance policies are offered on a "take or leave it" basis, which make them?

Contracts of Adhesion

In regards to representations or warranties, which of these statements is True?

If material to the risk, false representations will void a policy

Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?

Legal Purpose (Insurable Interest)

What is the consideration given by an insurer in the consideration clause of a life policy?

Promise to pay a death benefit to a named beneficiary.

A policy of adhesion can only be modified by whom?

The insurance Company

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

Warranty

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

When the application is made

Insurance company

Who makes the legally enforceable promises in a unilateral insurance policy?

What is warranty?

is a statement guaranteed to be true.

Which of these is considered to be an element of an insurance contract?

the offer, acceptance, consideration

The Consideration clause of an insurance contract includes:

the schedule amount of premium payments