Terms 2 Flashcards
A contract that has been prepared by one party with no negotiation between the applicant and insurer
Adhesion
Represents themselves and the insurer
Agent
Presents the potential for an unequal exchange of value or consideration between both parties
Aleatory
The appearance of the insurer providing the agent authority to perform unspecified tasks based in the agent insurer relationship
Apparent authority
Represents themselves and the insured
Broker
One who is capable of understanding the contract being agreed to
Competent party
The failure of the applicant to disclose a known material fact when applying for insurance
Concealment
The insurers promise to pay benefits depending on the occurrence of an event covered by the contract
Conditional
Sets forth the amount of invites and renewal premiums and frequency of future payments
Consideration
Provides insurer with a completed application and initial premium as consideration for insurance
Applicant
The legal impediment to one party denying the consequences of its own actions or deed if such actions or deeds result in another party acting in a specific manner or if certain conclusions are drawn
Estoppel
Explicit authority granted to the agent in the agency contract
Express authority
The responsibility an insurance producer has to account for all premiums collected and provide sounds financial advice to clients
Fiduciary
The deliberate knowledge of or intentional deceit to make false statements to be compensated by an insurance company
Fraud
An authority not explicitly granted to the agent in the contract of agency, but which common sense dictates the agent has
Implied authority
Attempt to return the insured to their original financial position
Indemnity contract
The financial, economic, and emotional impact associated with a person experiencing a specified loss
Insurable interest
A written contract
Insurance policy
Means an insurance contract must be legal in nature
Legal purpose
A false statement made by an applicant that would influence an insurer in determining whether or not to accept the risk
Material misrepresentation
Parties put their agreement in writing
Parole evidence rule
An amendment added to an insurance contract that overrides terms in original policy
Rider or endorsement
The insured in entitled to coverage under a policy that any sensible and prudent person would expect it to provide
Reasonable expectations
Statement made by the applicant they consider to be true
Representations
