Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Florida Health insurance > Legal Concepts > Flashcards

Legal Concepts Flashcards

1
Q

Which of the following consists of an offer, acceptance and consideration?

A

Contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Insurance polices are offered on a “take it or leave it” basis, which make them:

A

Contracts of Adhesion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?

A

Insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A life insurance policy would be considered a wagering contract WITHOUT:

A

Insurable interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A policy of adhesion can only be modified by whom?

A

The insurance company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the consideration given by an insurer in the Consideration clause of a life policy?

A

Promise to pay a death benefit to a named beneficiary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which of these is NOT a type of agent authority?

A

Express
Implied
PRINCIPAL
Apparent

The three types of agent authority includes express, implied and apparent authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which of these require an offer, acceptance, and consideration?

A

Contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal value reflects which of the following insurance contract features?

A

Aleatory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

At what point does an informal contract become binding?

A

When one party makes an offer and the other party accepts that offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Which of these arrangements allows one to bypass insurable interest laws?

A

Investor-Originated Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?

A

Legal Purpose (Insurable Interest)

A STOLI arrangement is used to circumvent state insurable interest statutes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A policy of adhesion can only be modified by whom?

A

The insurance company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which of these is NOT considered to be an element of an insurance contract?

A

The offer

Acceptance

NEGOTIATING

Consideration

Negotiating is not an element

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

In regards to representation or warranties, which of these statements is TRUE?

A

If material to the risk, false representation will void a pllicy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E’s life insurance policy be directed to?

A

F

Insurable interest only needs to exist at the time of application.

17
Q

Life and health insurance policies are:

A

Unilateral contracts

18
Q

What is a warranty?

A

Is a statement guaranteed to be true

19
Q

When must insurable interest be present in order for a life insurance policy to be valid?

A

When the application is made

20
Q

When must insurable interest exist for a life insurance contract to be valid?

A

Inception of the contract

21
Q

All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT:

A

BILATERAL

Unilateral

Aleatory

Adhesion

Unilateral, Aleatory, and Adhesion are all special features of insurance contracts.

22
Q

The part of a life insurance policy guaranteed to be true is called:

A

Warranty

23
Q

Which of these is considered a statement that is assured to be true in every respect?

A

Estoppel

WARRANTY

Guarantee

Representation

24
Q

Insurance contracts are known as _____ because certain future conditions or acts must occur before any claims can be paid.

A

Conditional

25
Q

A life insurance arrangement which circumvents insurable interest statues is called:

A

Investor-Originated Life Insurance

26
Q

The consideration clause of an insurance contract includes:

A

The schedule and amount of premium payments

27
Q

Statements made on a insurance application that are believed to be true to the best of the applicant’s knowledge are called:

A

Representations

28
Q

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?

A

Unilateral

29
Q

Who make the legally enforceable promise in a unilateral insurance policy?

A

Insurance company

30
Q

Insurance policy are considered aleatory contracts because

A

Performance is conditioned upon future occurrences

31
Q

Taking receipt of permiums and holding them for the insurance company is an example of:

A

Fiduciary responsibility

32
Q

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have:

A

Insurable interest in the proposed insured

Florida Health insurance (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions