Contract law

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?

Adhesion

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?

Conditional

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

Contracts of Adhesion

The key factor of representation that allows the injured party to rescind the contract is

If the representation is false in material point

During the grace period, the policy owner can

Pay a late premium without penalty

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

When an insurer's underwriter approves coverage

Adhesion is

prepared by only the insurer, the insured's only option is to accept or reject the policy as it is written

Consideration is

something of value that is transferred between two parties to form a legal contract

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

the insurer's financial rating

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as

consideration

A waiver is

giving up one's known right or privilege

What requirements must be identified in an insurance policy?

the parties to the contract, the proerty or persons being insured, a statemnt of the insurable interest rhat exists if the insured is not the owner, the risks being covered, the time period during which the policy will be in force or continue, rhe stated premium or manner to calculate premium

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

waiver

According to the Code, how many separate requirements should an insurance policy have?

6

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

The person must have at least completed secondary education.