Chapter 2 Life Flashcards Preview

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Flashcards in Chapter 2 Life Deck (8):
1

A policy of adhesion can only be modified by whom?

The insurance company

2

What requires an offer, acceptance, and consideration?

Contract

3

What is the consideration given by an insurer in the Consideration clause of a life policy?

Promise to pay a death benefit

4

Who makes the legally enforceable promises in a unilateral contract?

Insurer

5

Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called

Representations

6

The Consideration clause of an insurance contract includes

The schedule and amount of premium payments

7

When must insurable interest exist for a life insurance contract to be valid?

Inception of the contract

8

A life insurance policy would be considered a wagering contract WITHOUT

Insurable interest