Chapter Two Quiz Flashcards
Concealment as defined by the California Insurance Code is:
Neglect on the part of insured to communicate all information known to be material to the insurer
A person caught violating provisions regarding misrepresentation could be subject to:
A fine up to $25,000
Which of the following does not need to be indentified in an insurance policy?
The insurer’s financial rating
If only one party to an insurance contract has made a legally enforcable promise, what kind of contract is it?
Unilateral
The failure to disclose known facts is known as:
Concealment
If found material for underwriting, a misrepresentation:
Can void a contract
What other term is used to refer to unintentional torts?
Negligence
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of:
Concealment
When may a representation be withdrawn?
Prior to the issuance of the policy
What is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
In insurance, an offer is usually made when:
An applicant submits an application to the insurer
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
