Legal Concepts of Insurance Contract

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

What does a contact consist of?

An offer, acceptance, and consideration

Which of the following consists of an offer, acceptance, and consideration?

Contract

Which of these require an offer, acceptance, and consideration?

Contract

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

Contracts of Adhesion

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

If material to the risk, false representations will void a policy'

When must insurable 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

If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?

Insured

Life and health insurance policies are:

Multi-lateral contracts

Which of these is NOT a type of agent authority?

Principal

What is a contract of adhesion?

The contract that would be legally binding once signed in approval by the party being offered the contract

A policy of adhesion can only be modified by whom?

The insurance company

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?

Unilateral

The part of a life insurance policy guaranteed to be true is called a(n)

Warranty

Which of these is considered a statement that is assured to be true in every respect?

Warranty

At what point does an informal contract become binding?

When one party makes an offer, and the other party accepts that offer

When must insurable interest be present in order for a life insurance policy to be valid?

When the application is made

Insurance company

Who makes the legally enforceable promises in a unilateral insurance policy?

Which of these is not an element of an insurance contract?

[X] Consideration [__] the offer [__] acceptance [__] negotiating

Insurance contracts are known as [_____] because certain future conditions or acts must occur before any claims can be paid.

[conditional]

A life insurance policy would be considered a wagering contract WITHOUT:

insurable interest

Insurance policies are considered aleatory contracts because

performance is conditioned upon future occurrence

The Consideration clause of an insurance contract includes:

the schedule and amount of premium payments

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

Investor-Originated Life Insurance

Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called:

Representations

What is not an element of an insurance contract?

Negotiating

STOLI (Stranger Originated Life Insurance( is in violation of what contractual element?

Offer/Acceptance

All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT:

[x] Bilateral [__] Unilateral [__] Aleatory [__] Adhesion

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

Insurable interest in the proposed insured


Set pelajaran terkait

Cambridge Latin Course Stage 17 Vocab

View Set

Precalc Polar and Rectangular COMPLEX NUMBERS

View Set

npte - neuro (communication disorders)

View Set

Module #1 Computer Concepts Exam

View Set

Endocrine and Metabolic Disorders in Pregnancy

View Set