contract law end of chapter quiz

An insurance contract requires both insured and insurer to meet certain conditions in making contract enforceable. What contract characteristics does this describe? A. Conditional B. Contingent C. Aleatory D. Unilateral

A. Conditional contract

If found material for underwriting, a misrepresentation A. Must have been in writing to affect a contract B. Can void a contract C. May be withdrawn D. Does not affect either of the parties

B. Can void a contract

parties to a contract, which of the following does NOT describe a competent party: A. Person must be mentally competent to understand the contract B. Person must have at least completed secondary education C. Person must not be under the influences of drugs or alcohol. D. Person must be of legal age.

B. Person must have at least completed secondary education

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is this? A. Legal (but unethical) contract B. Unilateral C. Adhesion D. Conditional

B. Unilateral contract

The violation of a material warranty or other material provision of a policy allows. A. Only the insured to rescind B. Only the insurer to rescind C. Bothe to rescind D. Neither to rescind

Both the insurer and insured can rescind

which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company A. subrogation B. Warranty C. Aleatory D. Adhesion

C. Aleatory

Which of the following would qualify as an implied warranty in insurance. A. Contract's legal purpose B. Statements in the policy C. An oral representation by the applicant D. The applicants signature

C. An oral representation by the applicant

Every expressed warranty made at or before the execution of a policy must be A. Considered accepted by the insured upon delivery of the policy B. Binding and specific for the initial policy period C. Contained in and referred to in the policy or other document and signed by the insured D. Considered implied by the insurer and covered in the policy

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

Representations in insurance contracts qualify as: A. Misrepresentations B. Facts C. Implied warranties D. Express warranties

C. Implied warrenties

In determining how material a piece of information is to each party of a contract, the value is not solely by which of the following A. Interpretation that the seller places on such information in the agreement. B Amount of information that has been previously disclosed through the inquiry process C. Truthfulness of such statements being made. D. Influence this information would have in forming an estimate of the advantages and disadvantages of the contract.

D. Influence this information would have in forming an estimate of the advantages and disadvantages of the contrract

What is the definition of a unilateral contract> A. Two or more parties go in to a contract understanding there may be an unequal exchange of value B. One author: the company wrote the contract: the insured musta accept as written C. If one party makes a condition, the other party can counteroffer D. One-sided: only one party makes and enforceable promise

D. One-sided: only one party makes an enforceable promise.

What is a wrongful act or the violation of someones rights that lead to legal liability called? A. Hazard B. Peril C. Loss D. Tort

D. Tort.