Insurance chapter 3( legal concepts)

When must insurable interest exist for a life insurance contract to be valid?

At the time of application

Which of these is true regarding the exchange of consideration among parties involved in an insurance contract?

Can be unequal

The powers directly given to a producer in an agency contract are called

Express

What happens when an initial offer is answered with a counteroffer

Initial offer is void

An insurance contract may be voided if a misrepresentation found on the application is determined to be

Material

The following are all elements of a legal contract EXCEPT

Recorded evidence

During the application process, a statement made by an application that becomes part of the contract is considered to be a(n)

Warranty

An insurance company can be liable for a producer's unauthorized acts

When the agency contract is vague concerning the authority given

What qualifies as acceptance of an insurance contract offer?

the issued policy

Which of these do NOT indicate the presence of insurable interest in a life insurance contract?

Lifelong friendship

Who would be the most likely party for legally entering into a contract?

Small employer

All of these statements correctly describe an aleatory contract EXCEPT

Only one party makes any kind of legally enforceable promise

An insurance application requires an application to make a full,accurate disclosure of the risk factor involved. Using this criteria,an insurance policy is considered what type of contract

Contract of utmost good faith

XYZ insurance company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums?

Implied

In which way are insurance policies said to be aleatory?

Involves the potential for the unequal exchange of value

An arrangement where an individual is authorized to act on behalf of another person or company is sectioned through

Law of agency

Which element of a contract constitues a proposal by one party to another?

Offer

Insurable interest involves what assumption?

One person benefits from the continuation of another's life

What is the insurer responsible for when a producer is acting within the scope of authority granted in the agency contract?

Responsible for acts by the producer that are authority only

An insurance company's voluntary refusal to enforce a contract's provision is called a(n)

Waiver