Chapter 1 Section 1 Part 3

Question 1

required for proper agreement/meeting of the minds, to be valid (2)

Answer 1

• offer made

- unconditional acceptance of terms

Question 2

What is not necessary to be in writing?

Answer 2

The two items required for proper agreement (meeting of the minds)

Question 3

obligation/time constraint upon applicant for insurance when policy issued differently than requested?

Answer 3

courts may rule have accepted, if fail to promptly return policy to insurer

Question 4

Four persons/incompetents who do not have legal capacity

Answer 4

• minors
• incompetents (mental)
• drugs, alcohol (under influence of)
• trade (names)

Question 5

Three necessities of life for which minors are permitted to contract

Answer 5

food
clothing
lodging

Question 6

Four items that might affect the presence of genuine intention

Answer 6

fraud
duress (threats, etc.)
concealment
mistake

Question 7

Three other elements a contract needs to be enforceable (from insured’s perspective)

Answer 7

insurable interest
utmost good faith
indemnity

Question 8

insurable interest (need to prove…)

Answer 8

would suffer financially by loss

Question 9

indemnity (definition)

Answer 9

payment restricted to only that required to indemnify persons for their losses

Question 10

Four persons who might have insurable interest in contract of insurance

Answer 10

• property owners, business partners
• mortgagees
• bailees (repair, service, safekeeping)
• anyone liable to a third party for injury/damage