Chp2 Legal Concepts and Contracts
Which of the following terms best describes the applicant's statements on an insurance application?
Representations
Joyce applies for a health insurance policy. When the agent delivers the policy to Joyce, an additional premium is required to account for Joyce's medical conditions. Joyce must agree to pay the additional premium before the policy is effective. The insurer has made:
A counter-offer
Insurance contracts sometimes contain ambiguities. Which of the following has not been taken to court for further interpretation?
Subrogation
All of the following are part of the consideration element of an insurance contract, EXCEPT:
The applicant's promises
In order to be valid, a contract must have:
Legal purpose
What are the basic elements of a legal contract
Offer, acceptance, consideration, competent parties and legal purpose
Insurable interest requires that an individual have a valid concern for the well being of the person insured. In a life policy insurable interest can be present in all of the following, EXCEPT:
Second cousins
All parties to a contract must be of a legal age, mentally capable of understanding the terms of the contract, and not influenced by drugs or alcohol. Which of the following elements of a legal contract is described?
Competent parties
What type contract is said to be, if...then?
Conditional
All of the following statements are true regarding warranties, EXCEPT:
Insureds are held to the principle of warranties.
