Contract law
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?
Adhesion
The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?
Conditional
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as
Contracts of Adhesion
The key factor of representation that allows the injured party to rescind the contract is
If the representation is false in material point
During the grace period, the policy owner can
Pay a late premium without penalty
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
Adhesion is
prepared by only the insurer, the insured's only option is to accept or reject the policy as it is written
Consideration is
something of value that is transferred between two parties to form a legal contract
Which of the following does not need to be identified in an insurance policy?
the insurer's financial rating
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as
consideration
A waiver is
giving up one's known right or privilege
What requirements must be identified in an insurance policy?
the parties to the contract, the proerty or persons being insured, a statemnt of the insurable interest rhat exists if the insured is not the owner, the risks being covered, the time period during which the policy will be in force or continue, rhe stated premium or manner to calculate premium
An insurance company receives an application with some information missing and issues the policy anyway. What is this called?
waiver
According to the Code, how many separate requirements should an insurance policy have?
6
In terms of parties to a contract, which of the following does NOT describe a competent party?
The person must have at least completed secondary education.