Legal Concepts Flashcards
1
Q
Statement guaranteed to be true
A
Warranty
2
Q
STOLI violates which contractual element?
A
Legal purpose (Insurable interest)
3
Q
When does a contract become legally binding?
A
When consideration is provided by one of the parties to the contract.
4
Q
Taking receipt of premiums and holding them for the insurance company
A
Fiduciary responsibility
5
Q
A risk that presents both the chance for loss or gain. It is not insurable.
A
Speculative risk
6
Q
The only insurable risk. It presents a potential for loss only, such as injury, illness, and death.
A
Pure risk
