contract features Flashcards
fraud
intentional misrepresentation of a material fact
owner who controls the policy
policyowner
concealment
intentionally withholding of information of a material fact
representations
statements that are true to the best of the applicants knowledge
absolute true statements
warranties
policyowner
pays the premium to the insurance company; owner controls the policy
insurable interest may be for
policyowner’s own life life of family member life of key business partner
expectation of the insured to provide truthfully accurate information
utmost good faith
employees ___ insure their employer
may not
receives federal income tax-free benefit upon insured’s death
beneficiary
beneficiary
receives federal income tax-free benefit upon insured’s death
warranties
absolutely true statements breaching these can void the policy
statements that are not guaranteed to be true
representations
insurable interest
valid reason to writing insurance on someone (blood or business), must exist at the time of application
fact that would lead to a different underwriting decision had the insurer known about it
material fact
