(Life) 2 - Legal Concepts

What is the consideration given by an insurer in the Consideration clause of a life policy?

Promise to pay a death benefit

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

warranty

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

The Consideration clause of an insurance contract includes

the schedule and amount of premium payments

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

At the time of application

Insurance policies offered on a "take it or leave it" basis are considered what?

Contracts of Adhesion

Who makes the legally enforceable promises in a unilateral contract?

Insurer

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

Investor-Originated Life Insurance

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

Warranty

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

representations