handling risk, elements, terms

Question 1

certain conditions must be met to be approved

Answer 1

conditional

Question 2

elements of legal contract

Answer 2

agreement consideration competent parties legal purpose

Question 3

moving risk from insured to insurer

Answer 3

transfer of risk

Question 4

ways to handle risk

Answer 4

avoidance retention sharing reduction transfer

Question 5

offer or application/ acceptance of issued policy

Answer 5

agreement

Question 6

applicant - representation and premium / insurer - payments of claims

Answer 6

consideration

Question 7

unilateral

Answer 7

one-sided promise

Question 8

all contracts are considered __

Answer 8

personal

Question 9

law to accept or deny the terms from insured

Answer 9

adhesion

Question 10

not against public policy (only written for legal purpose) element of contract

Answer 10

legal purpose

Question 11

similar to transferring risk, depends on insurance policies

Answer 11

sharing risk

Question 12

contracts are personal because

Answer 12

its only between insurer and insured

Question 13

minimizing physical hazards

Answer 13

reduction of risk

Question 14

conditional

Answer 14

certain conditions must be met to be approved

Question 15

unequal exchange of value

Answer 15

aleatory

Question 16

law of adhesion

Answer 16

accept or deny the terms from insured

Question 17

self insuring, do not have insurance to transfer risk

Answer 17

retention of risk

Question 18

insurer cant force a policy insured does not want; one-sided promise

Answer 18

unilateral

Question 19

legal age, mentally competent, not under the influence of narcotics (element of contract)

Answer 19

competent parties

Question 20

aleatory

Answer 20

unequal exchange of values

Question 21

elements of insurable risk

Answer 21

due to chance, definite and measurable, statistically predictable, not catastrophic (puts insurance at risk for large claim), randomly selected/large loss exposure (not premeditated)