Legal Concepts Flashcards
An appointed producer’s implied authority is derived from
Express Authority
In what way are insurance policies said to be aleatory?
Involves the potential for the unequal exchange of value
The courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n)
Contract of Adhesion
A producer working for an insurance company may be personally liable for
acts performed which are prohibited in the agency contract
An insurance application requires an applicant to make a full, accurate disclosure of the risk factor involved. Using this criteria, an insurance policy is considered what type of contract?
Contract of utmost good faith
The unwritten authority given to a producer to carry out necessary incidental acts of the agency agreement is called
Implied authority
Christopher is issued an insurance policy that contains an attached agreement which alters the terms of the policy. This attached agreement is called a(n)
Endorsement
All of these statements correctly describe an aleatory contract EXCEPT
Only one party makes any kind of legally enforceable offer
XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums?
Implied authority
The following are all elements of a valid contract EXCEPT
Written Evidence
Which element of a contract constitutes a definite and unqualified proposal by one party to another?
Offer
When must insurable interest exist for a life insurance contract to be valid?
Inception of the contract
The powers directly given to a producer in an agency contract are called
Express
Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of
Apparent Authority
Which of the following would NOT have a restricted ability to enter into a contract
Small employer
