Chapter 2
Promise to pay a death benefit
What is the consideration given by an insurer in the Consideration clause of a life policy?
negotiating
Which of these is NOT considered to be an element of an insurance contract?
The insurance company
A policy of adhesion can only be modified by whom?
Insured
If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of?
conditional
Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid.
Contracts of Adhesion
Insurance policies offered on a "take it or leave it" basis are considered what?
Representations
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called
the schedule and amount of premium payments
The Consideration clause of an insurance contract includes
Warranty
The part of a life insurance policy guaranteed to be true is called a
Contract
Which of these require an offer, acceptance, and consideration
Insurer
Who makes the legally enforceable promises in a unilateral contract?
At the time of application
When must insurable interest be present in order for a life insurance policy to be valid?
insurable interest in the proposed insured
When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have
Investor-Originated Life Insurance
Which of these arrangements allows one to bypass insurable interest laws?
