Chapter 2 Flashcards
Each of the following must be present in order for insurance contract to be legal and enforceable Except:
Competent Underwriting
Delivery of an insurance contract is an illustration of
Acceptance
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
Contract Adhesion
The statement made by applicant are considered to be
Representations
A statement made by an applicant for insurance that is guaranteed to be absolutely true and is made part of the contract is called
Warranty
Which of the following is considered to be voluntary relinquishment of a known right
Waiver
Deliberate or intentional deceit by making false statements is known as
Fraud
Each of the following is characteristic of an insurance contract Except:
Bilateral
A statement made by an applicant for insurance that is made part of the contract and upon which coverage is conditioned is known as
An individual under duress
Nether party can be under duress or any undue influence
genuine assent
Several elements must present in order for a insurance contract to be enforceable. One required element is that all parties be competent. Each of the following is competent to enter a contract except
An individual under duress
Which of the following best describes when a insurer fails to enforce a provision in a insurance policy ?
Waiver
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?
The original offer has been rejected by the insurer.
Which of the following is the binding force in a insurance contract.
Consideration
Which of the following best describes a contract that is characterized by a premium paid for coverage with no guarantee of a benefit being paid in the future?
Aleatory
