Chapter 2 Legal Concepts

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

Contracts of Adhesion

Insurance policy are offered on a take it, or leave it basis, which make them

Contracts of Adhesion

Which of these arrangements allows one to bypass insurable interest laws?

Investor-originated life insurance

Which of these is NOT a type of agent authority

Principal

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

Representation

Which of the following best describes a warranty?

Statement guaranteed to be true

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

Warranty

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

If material to the risk, false representations will NOT void a policy

One must enable interest exist for a life insurance contract to be valid?

Inception of the contract

A life insurance policy would be considered a wagering contract without

Insurable interest

A life insurance policy would be considered a wagering contract without?

Insurable interest

When third-party ownership is involved, applicants, who also happen to be stated, primary beneficiary are required to have

Insurable interest in the proposed insured

A policy of adhesion can only be modified by whom?

Insurance company