Contract Basics Flashcards
(Blank) is intentional (knowingly) misrepresentation, omission (oversight/leaving out), concealing material info contract or claim.
Fraud
(Blank) is not communicating/silent/failing to disclose/withheld, information that should/ought to be communicated to the other party.
Concealment
(Blank) is oral/written representation/statement that is false.
Misrepresentation
(Blank) is not knowing the information placed the person at a disadvantage. It is based on the influence of the facts not an event.
Materiality
What is Twisting?
When a producer conceals, misrepresents, or makes a misleading comparison that INDUCES the insured to drop what they have and buy from them.
What is a unilateral contract?
When only 1 party is legally bound to contractual performance.
Features/Characteristics of an Insurance Contract
Adhesion, Unilateral, Conditional, Personal, Aleatory, Indemnity, Valued, Utmost Good Faith, and Open Policy
Define Adhesion.
Take or leave it, no negotiation on the insured’s part. Vague/ambiguous courts will rule in favor of insured.
Define Aleatory.
Performance depends upon an uncertain future event (claim).
Unequal exchange of money.
Express or implied; statements guaranteed to be true.
Relate to past, present, future intent to do or not to do something - materially affects the risk.
Warranties
A material stipulation in the contract that if breached voids coverage…
Warranty
Withheld, failed to communicate, failed to mention describes…
Concealment
Unless it is merely a statement of an expectation or a belief, a representation as to the future is a…
Promise
Define Rescission.
Voiding = contract is terminated from the beginning and treated as if it had never existed.
Requires material concealment, misrepresentation or breach of warranty.
The 6 required specifications for all insurance policies is required by whom?
California Insurance Code
