Fundamentals Of Insurance

Question 1

When does acceptance usually take place

Answer 1

When the underwriters approve the application and issue a policy

Question 2

A policy that requires certain conditions be met by the policy owner and the company in order for the contract to be executed, and before Rachel part fulfills its obligations

Answer 2

Conditional contract

Question 3

Only one of the parties to the contract is legally bound to do anything. The insured makes no legally binding promises but the insurer is legally bound to pay losses covered by a policy in force

Answer 3

Unilateral contract

Question 4

A contract that is prepared by one party and either accepted or rejected by the other party

Answer 4

Contract of adhesion

Question 5

Who must sign/initial the application form

Answer 5

The agent
The applicant
The proposed insured if different than the applicant

Question 6

What are the 4 essential elements a contract must have to be legally binding

Answer 6

Agreement- offer and acceptance
Consideration
Competent parties
Legal purpose