Term
Each of the following must be present in order for an insurance contract to be legal and enforceable, EXCEPT:
A.) Offer
B.) Acceptance
C.) Competent Underwriting
D.) Legal Purpose |
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Definition
| C.) Competent Underwriting |
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Term
Delivery of an insurance contract is an illustration of:
A.) The Offer
B.) An Acceptance
C.) A Consideration
D.) An Aleatory Action |
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Definition
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Term
An insurance contract is created by an insurer. Any ambiguities that appear in the future will be decided by a court in favor of the insured since the policy is:
A.) A Contract of Adhesion
B.) An Aleatory contract
C.) A Unilateral contract
D.) A personal contract |
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Definition
| A.) A Contract of Adhesion |
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Term
The statement made by an applicant in an insurance application are considered to be:
A.) Warranties
B.) Representations
C.) Mispresentations
D.) Countersignatures |
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Definition
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Term
A Statement made by an applicant for insurance that is guaranteed to be absolutely true and is made part of the contract is called a:
A.) Representation
B.) Conditional Promise
C.) Consideration
D.) Warranty |
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Definition
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Term
Which of the following is considered to be a voluntary relinquishment of a known right?
A.) Warranty
B.) Estoppel
C.) Waiver
D.) Parole Evidence |
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Definition
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Term
Deliberate or intentional deceit by making false statements is known as:
A.) Larceny
B.) Rebating
C.) Fraud
D.) Misrepresentation |
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Definition
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Term
Each of the following is a characteristic of an insurance contract, EXCEPT?
A.) Aleatory
B.) Adhesion
C.) Personal
D.) Bilateral |
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Definition
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Term
A statement made by an applicant for insurance that is made part of the contract and upon which coverage is conditioned is known as:
A.) Warranty
B.) Waiver
C.) Material misrepresentation
D.) Consideration |
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Definition
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Term
Several elements must be present in order for an insurance contract to be enforceable. One required element is that all parties be competent. Each of the following is competent to enter into a contract, EXCEPT:
A.) Minor contracting for necessities
B.) An insured suffering a serious illness
C.) An officer of an insurer
D.) An individual under duress |
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Definition
| D.) An individual under duress |
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Term
An applicant for insurance submits, through a producer, a completed application and the initial premium. Once it is received by the insurance company underwriter, the risk is assessed and the insurer makes a counter-offer. Which of the following has occurred?
A.) The offer has been accepted by the insurer
B.) The original offer has been rejected by the insurer
C.) The negotiations between the prospective parties have concluded
D.) The contract is void |
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Definition
| B.) The original offer has been rejected by the insurer |
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Term
Which of the following is the binding force in an insurance contract?
A.) The agreement
B.) The offer and acceptance
C.) The consideration
D.) Legal capacity |
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Definition
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Term
Which of the following best describes when an insurer fails to enforce a provision in an insurance policy?
A.) Concealment
B.) Waiver
C.) Adhesion
D.) Fraud |
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Definition
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