Chapter 4 Flashcards
Life insurance is a _______ contract; subject to contract law.
written
The branch of law that deals with contract disputes is called…?
contract law
The branch of law that deals with civil disputes is called…?
tort law
The idea of when one party makes an offer, the other party accepts its terms is called…?
agreement
The idea of when both parties are legally able to extend/accept an offer is called…?
competent parties
When both parties are within their legal bound, this is called…?
legal purpose
When both parties have something of value in the contract, this is called…?
consideration
The idea that the insurance company sets the terms and conditions of the policy and the customer agrees to them is called…?
contract of adhesion
Insurance is an unequal exchange of money based on chance. One party may receive more value than the other based on uncertain future circumstances. This is called…?
aleatory
When only one party makes a promise, this is called…?
unilateral
When only pays out if some event actually happens, this is called…?
conditional
When each party is acting in good faith and trusting that the other party is as well, this is called…?
utmost good faith
When a policyholder must prove that they have a financial stake in whatever they are trying to insure, this is called…?
insurable interest
The idea that insurance contracts are meant to compensate the insured (restore them back to where they were before the loss), not provide excess benefits, this is called…?
indemnity concept
The maximum amount of money an insurer owes you if something happens is called…?
limit of liability
