Chapter 2 Life Flashcards
A policy of adhesion can only be modified by whom?
The insurance company
What requires an offer, acceptance, and consideration?
Contract
What is the consideration given by an insurer in the Consideration clause of a life policy?
Promise to pay a death benefit
Who makes the legally enforceable promises in a unilateral contract?
Insurer
Statements made on an insurance application that are believed to be true to the best of the applicant’s knowledge are called
Representations
The Consideration clause of an insurance contract includes
The schedule and amount of premium payments
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
