Test 2 Flashcards
In an insurance contract, that insurer is only partly who makes illegal enforcement promise what kind of contract is this?
Unilateral
What of these arrangements allows one to bypass insurable interest laws
Investor originated life insurance
The consideration clause of an insurance contract includes
The schedule and amount of premium payments
Q purchases a $500,000 life insurance policy and pays 900 and premiums over the first six months. Q dies suddenly and beneficiary is paid 500,000. This exchange of unequal values reflects which of the following insurance contract features.
Aleatory
A life assurance policy would be considered a wager contract without
Insurable interest
All of the following are considered to be typical characteristics describing the nature of an insurance contract EXCEPT
Bilateral
Which of these is considered a statement that is assured to be very true in every respect
Warranty
A policy of adhesion can only be modified by whom
The insurance company
In regards to your representation or warranties, which of these statements is true
If material to the risk, false representation will void policy
Taking receipt of premiums and holding them for insurance company is an example of
Fiduciary responsibility
Insurance policies are considered aleatory contracts because
Performance is conditioned upon a future occurrence
A contract where party either accepts or rejects the terms of a contract written by another party is called a of
Adhesion
