Chapter 1 Section 1 Part 2 Flashcards
1
Q
most popular way of dealing with risk?
A
transfer
2
Q
speculative risk (+ex)
A
possibility of both loss and gain (placing bet at blackjack table)
3
Q
pure risk (+ex)
A
no chance of financial gain (house burning down)
4
Q
speculative/pure risk - which will insurers not provide policy for?
A
speculative
5
Q
five elements all contracts contain
A
agreement consideration legality of object legal capacity genuine intention
6
Q
agreement (3)
A
- meeting of minds
- to subject matter, terms of contract
- first test of enforceability at law
7
Q
consideration (3)
A
- exchange (of) something of value between parties
- payment/promise of payment of premium
- promise to indemnify insured
8
Q
legality of object (2, 3 ex’s)
A
legal, not contrary to public policy (killing, illegal drugs, fraud, etc)
9
Q
legal capacity of parties to contract (2)
A
legal capacity
competent
10
Q
genuine intention
A
parties actually intended to enter into contract
