Unit 2: Contracts Flashcards
CLOAC
consideration
legal purpose
offer
acceptance
competent parties
money & statements made on an application
consideration
transfer of a legal risk
legal purpose
a proposal made by one of the potential parties to the contract
offer
an offer must be unconditional and unqualified
acceptance
contracts of adhesion
insurance policies
value received from the contract by each party is unequal
aleatory contract
the insured and insurance company have a right to expect honesty from each other
utmost good faith
one sided contracts because only one party is legally bound to perform under the contract
unilateral
contracts between the insurance company and the applicant or insured; in some cases they’re non-transferable
personal contracts
information given that is not true and does affect the insurer’s decision
material misrepresentation
information given that isn’t true but would not affect the insurance company’s decision
misrepresentation
statements that the applicant believes to be true…
representation
a statement that is guaranteed to be true and may be relied on by the other party
warranty
failure to disclose known facts.
concealment
intentional act designed to deceive and induce another party to part with something of value
fraud
defined as the intentional and voluntary giving up of a known right
waiver
once a right has been waived, it cannot be reinserted and used against the insured
estoppel
