Chater Quiz 2 Flashcards
(11 cards)
In an insurance contract consideration refers to
Exchange of something of value by both parties
In insurance contracts a warranty is a
Statement that must be true
An insurance contract must contain all of the following element s to be considered legally binding except
Beneficiary’s consent
When would a misrepresentation on the insurance application be considered fraud
Any misenprecintation is considered fraud
Who acts on behalf of the principal
Agent
Which of the following best describes the aleastory nature of an insurance contract
Policies are submitted to the insurer on a take it or leave it basis
Which of the following does not need to be identified in an insurance policy
The insurers financial rating
The principle of insurance for each unit of exposure is known as
Rate
Which of the following terms refers to an unintentional tort
Negligence
A life insurance policy has a legal purpose if both of which of the following element exist
Insurable interest and consent
