Unilateral contracts.(Life and health insurance policies are considered unilateral contracts because one party makes a promise, and the other party can only accept by performance.)
  • Life and health insurance policies are?
  • The part of a life insurance policy guaranteed to be true is called a?
  • Who makes the legally enforceable promises in a unilateral insurance policy?
  • Which of these arrangements allows one to bypass insurable interest laws?.
Unilateral
  • If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?
  • if a contract of adhesion contains questionable language, to whom would the interpretation be in favor of?
  • In an insurance contract, the insurer is the only party who makes a legally enforceable promise., what kind of contract is this?
  • In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?
Consider to be true and accurate tothe best of the applicant's belief. It is used by the insurer to evaluate whether or not to issue a policy.
  • Implied Authority.
  • Consideration.
  • Parol evidence.
  • Representation.
Agent solicitation
  • A life insurance policy would be considered a wagering contract without?
  • A policy of adhesion can only be modified by whom?
  • The part of a life insurance policy guaranteed to be true is called a?
  • Life and health insurance policies are?
Inception of the contract
  • Which of these require an offer, acceptance, and consideration?
  • When must insurable interest exist for the life insurance contract to be valid?
  • Insurance policies are offered on a "take it or leave it" basis which makes them?
  • Which of these is NOT considered to be an element of an insurance contract?
Contracts of Adhesion.(Because insurance policies are offered on a "take it or leave it" basis, they are referred to as Contracts of Adhesion.)
  • If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?
  • The Consideration clause of an insurance contract includes?
  • Insurance policies are offered on a "take it or leave it" basis which makes them?
  • Insurance policies are offered on a "take it or leave it" basis, which make them?
Contracts of adhesion
  • Which of these is NOT considered to be an element of an insurance contract?
  • Insurance policies are offered on a "take it or leave it" basis which makes them?
  • Which of these require an offer, acceptance, and consideration?
  • In an insurance contract, the insurer is the only party who makes a legally enforceable promise., what kind of contract is this?
Consideration is given by the applicant in exchange for the insurer's promise to pay benefits.
  • Express Authority.
  • Consideration.
  • Representation.
  • Concealment.
Investor-Originated Life Insurance.
  • A life insurance arrangement which circumvents insurable interest statutes is called?
  • Which of these arrangements allows one to bypass insurable interest laws?
  • A life insurance arrangement which circumvent insurable interest statues is called?
  • Which of these arrangements allows one to bypass insurable interest laws?.
Concealment is defined as the failure by the applicant to disclose a known material fact when applying for insurance.
  • Waiver.
  • Express Authority.
  • Concealment.
  • Representation.
The schedule and amount of premium payments.
  • Which of these require an offer, acceptance, and consideration?
  • The consideration clause of an insurance contract includes?
  • When must insurable interest be present in order for a life insurance policy to be valid?
  • When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have?
Insurable interest.(Without insurable interest, a life insurance policy would be considered a wagering contract.)
  • A policy of adhesion can only be modified by whom?
  • A life insurance arrangement which circumvents insurable interest statutes is called?
  • A life insurance policy would be considered a wagering contract WITHOUT?
  • A life insurance arrangement which circumvent insurable interest statues is called?
This means that only one party (the insurer) makes any kind of enforceable promise.
  • Estoppel.
  • At what point does an formal contract become binding?
  • Life and health insurance policies are?
  • Unilateral.
Legal purpose. (insurable interest).
  • Which of these arrangements allows one to bypass insurable interest laws?
  • Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?
  • Strange originated life insurance (STOL I )has been found to be in violation of which of the following contractual elements?
  • What is the consideration given by an insurer in the Consideration clause of a life policy?
Representations
  • In an insurance contract, the insurer is the only party who makes a legally enforceable promise., what kind of contract is this?
  • if a contract of adhesion contains questionable language, to whom would the interpretation be in favor of?
  • Which of these is not considered to be an element of an insurance contract?
  • Statements made on an insurance application that are believed to be true to the best of the applicants knowledge are called?
Prevents parties from changing the meaning of a written contract by trying to introduce oral or written statements made before the formation of the contract.
  • Parol evidence.
  • Waiver.
  • Implied Authority.
  • Representation.
Promise to pay a death benefit to named beneficiary
  • Which of these arrangements allows one to bypass insurable interest laws?
  • Which of these arrangements allows one to bypass insurable interest laws?.
  • Who makes the legally enforceable promises in a unilateral insurance policy?
  • What is the consideration given by an insurer in the consideration clause of a life policy?
VoidThe terms void and voidable are often incorrectly used interchangeably. A void contract is simply an agreement without legal effect.Voidablevoidable contract is an agreement which, for a reason satisfactory to the court, may be set aside by one of the parties to the contract.
  • Conditional.
  • Implied Authority.
  • Competent Parties.
  • Void/Voidable Contract
This means that the insurer's promise to pay benefits depends on the occurrence of an event covered by the contract. If the event does not materialize, no benefits are paid. Furthermore, the insurer's obligations under the contract are conditioned on the performance of certain acts by the insured or the beneficiary. For example, the timely payment of premiums is a condition for keeping the contract in force. If premiums are not paid, the company is relieved of its obligation to pay a death benefit.
  • Concealment.
  • Adhesion.
  • Warranty.
  • Conditional.
When one party makes an offer and the other party accepts that offer.
  • A policy of adhesion can only be modified by whom?
  • Unilateral.
  • Offer & Acceptance?
  • At what point does an formal contract become binding?
Implied authority is the unwritten authority that is not expressly granted, but which the agent is assumed to have in order to transact the business of the principal.
  • Competent Parties.
  • Implied Authority.
  • Consideration.
  • Representation.
Principal
  • When must insurable interest exist for the life insurance contract to be valid?
  • Which of these is not a type of agent authority?
  • Which of these is considered a statement that is assured to be true in every respect?
  • Which of these require an offer, acceptance, and consideration?
This means both the policy owner and the insurer must know all material facts and relevant information. There can be no attempt by either party to conceal, disguise, or deceive. A consumer purchases a policy based largely on the insurer and agent's explanation of the policy's features, benefits, and advantages. Insurance applicants are required to make a full, fair and honest disclosure of the risk to theagent and insurer.
  • Utmost Good Faith.
  • Conditional.
  • Competent Parties.
  • Apparent Authority
To be enforceable, a contract must be entered into by competent parties. With a contract of insurance, the parties to the contract are the applicant and the insurer. The insurer is considered competent if it has been licensed or authorized by the state(s) in which it conducts business. The applicant, unless proven otherwise, is presumed to be competent with three possible exceptions: ► Minors► The mentally infirm► Those under the influence of alcohol or narcotics
  • Void/Voidable Contract
  • Apparent Authority
  • Competent Parties.
  • Insurable Interest.
Inventor-originated life Insurance
  • A life insurance arrangement which circumvents insurable interest statutes is called?
  • A life insurance arrangement which circumvent insurable interest statues is called?
  • What is the consideration given by an insurer in the Consideration clause of a life policy?
  • Which of these arrangements allows one to bypass insurable interest laws?.
A waiver is the voluntary giving up of a legal, given right. If an insurer fails to enforce (waives) a provision of a contract, it cannot later deny a claim based on a violation of that provision.
  • Parol evidence.
  • Waiver.
  • Warranty.
  • Representation.
Is the statement guaranteed to be true.
  • Aleatory
  • Warranty
  • Insurable Interest.
  • Express Authority.
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