Policy Provisions and Contract Law

Question 1

4 elements of a contract

Answer 1

agreement
consideration
competent parties
legal purpose

Question 2

What is a binder?

Answer 2

Temp agreement

Question 3

What is a warranty?

Answer 3

Absolutely true statement

Question 4

What is consideration?

Answer 4

Binding force (agreement to pay)

Question 5

7 components of a policy

Answer 5

Declaration
Definitions
Insuring agreement
Additional coverage
Conditions
Endorsements
Exclusions

Question 6

Basic personal information found where in policy?

Answer 6

Declaration

Question 7

Meat and core of policy

Answer 7

Insurance agreement

Question 8

What is additional or supplementary coverage?

Answer 8

Extra coverage with no extra expense

Question 9

What is an endorsment?

Answer 9

Add-ons to the coverage (change/correct items)

Question 10

Who has control over the policy?

Answer 10

First named insured

Question 11

What is assignment

Answer 11

Transfer in policy holdership

Question 12

What is appraisal?

Answer 12

Comes from disagreement on policy

Question 13

What is arbitration?

Answer 13

Settles disagreement

Question 14

What is pro rata

Answer 14

Multiple instances of coverage

Question 15

When does a plan start

Answer 15

When the insurer accepts the application