Quiz 1

Question 1

Which of the following terms describes a legal agreement between two competent parties that promises a certain performance in exchange for certain considerations?
a contract
an acceptance
an offer
a policy

Answer 1

a contract

Question 2

Which of the following is not an element of a legal contract ?

acceptance
offer
unilateral
legal purpose

Answer 2

unilateral

Question 3

Lauren is filling out an insurance application with information that she believes to be true. The information that she is providing is considered

a misrepresentantion
trusted statement
a representation
guarantee

Answer 3

a representation

Question 4

A guarantee that something is true is

trusted statement
a representation
a warranty
material representation

Answer 4

a warranty

Question 5

In an insurance contract, the consideration that the insured gives is called.

the acceptance
contract
premium payment
the offer

Answer 5

premium payment

Question 6

The failuare to disclose known facts is
waiver
scam
material misrepresentation
concealment

Answer 6

concealment

Question 7

Debra intentionally lied on her insurance application to obtain coverage. This is called

misrepresentation
adverse selection
fraud
estoppel

Answer 7

fraud

Question 8

An agreement between two parties is also called

adhesion
bilateral
aleatory
offer and acceptance

Answer 8

offer and acceptance

Question 9

Which of the following individuals would be considered a competent party in an insurance contract?

A. Jill, turns 21, at the end of the year
B. Eric, who has been drinking at the bar, prior to meeting her insurance agent.
C. Allison, is 21, does not have a job, and lives at homes with parents.
D. Alexis, who is diagnosed with an mental illness.

Answer 9

Allison, is 21, does not have a job, and lives at homes with parents.

Question 10

In insurance, an insured may pay premiums for many years without having a loss, or an insured may suffer a loss and get a larger amount of money from the insurance company than he has paid in premiums. For this reason, an insurance contract is

unilateral
aleatory
personal
conditional

Answer 10

aleatory

Question 11

An insurance contract is prepared by one party(insurance company)with little or no opportunity for the other party (insured) to bargain. This characteristic is called

conditional
adhesion
aleatory
unilateral

Answer 11

adhesion

Question 12

A statement that is guaranteed to be true is

a warranty
an impersonation
a misrepresentation
a representation

Answer 12

a warranty

Question 13

Misrepresentations do not necessarily void insurance contracts. To do so, they must be

unilateral
warranties
material
personal

Answer 13

material