P&C CH 2 Contract LAW

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Author:
hnkoke
ID:
163327
Filename:
P&C CH 2 Contract LAW
Updated:
2012-07-20 19:51:53
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Description:
P&C Fundamentals Contract law
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  1. What is an insurance policy ?
    A Contract
  2. A contract is agreement between two or more _______
    parties
  3. _______ and _______ are the first two parts of a valid contract.
    Offer and acceptance
  4. The Application with premium given to the company by the applican is an ______
    offer
  5. The delivery of the policy signals the company has ____ the _____
    accepted the offer
  6. The premium and the statements on teh application are the are the applicant's __________.
    consideration
  7. The promise to pay is the Insurance Company's _______.
    consideration
  8. Insurance contracts are Unilateral, Aleatory, and are _____ of _______
    contracts of adhesion
  9. Unilateral means
    only the company makes legally enforaceable promises.
  10. Aleatory means:
    premium and benefits will never be equal.
  11. Adhesion means:
    the comapny writes teh entire contact
  12. Underwritting invloves selection and ____ of ____
    classification of risk
  13. A statement by the applicant that must be absolutely true is called what?
    Warranty
  14. A statement the applicant thinks is true is a _________.
    Representation
  15. A lie is what?
    misrepresentation
  16. Not revealing the entire truth is called?
    Concelment
  17. __________ and ___________ can result in the policy being contrested.
    Misrepresentations and concealments
  18. The ____   _____ ____   ____ governs the company's actions when checking credit history.
    Fair Credit Reporting Act
  19. Credit Reporting Agencies can only keep information for how many years?
    7 years ( 10 years for bankruptcy)
  20. What are binders?
    interim protection
  21. Binders may be ______ or ________.
    written or oral
  22. Binders expire in one of three ways, the data the policy is issued, expiration date of the binder, or when the binder is ________ by the company.
    cancelled
  23. With regard to insurance, the term consideration means
    a. the premium and the statments on the application
    b. the insurer's method of evaluating the applicant for coverage
    c. the screening proccess all agents undergo prior to licensing
    d. the side-by-side policy comparision by the applicant
    the premium and the statemenst on the application.
  24. Which of the following terms indicates that an insurance contract contains the legally enforceable promises on only one party?
    a. adhesion
    b. unilateral
    c. conditional
    d. aleatory
    Unilateral
  25. In purchasing an insurance contract, the applicant must accpt the contract as written. This type of contract is referred to as a (n)
    a. settled contract
    b. aleatory contract
    c. contract of adhesion
    d. persoanl contract
    contract of adhesion
  26. Which of the following principles states that in formaning an insurance contract, both parties have a responsiblity to the other?
    a. Doctrine of Warranties
    b. Doctrine of Representations
    c. Doctrine of Utmost Good Faith
    d. Doctrine of Reasonable Expectations
    Doctrine of utmost Good faith
  27. An incorrect statement made intentionally on an auto insurance application is a
    a. fraud
    b. warranty
    c. misrepresentation
    d. concealment
    misrepresentation
  28. A binder is a(n)
    A. application
    B. endorsement
    C. interim insuring agreement
    D. counteroffer
    C. interim insuring agreement
    (this multiple choice question has been scrambled)
  29. Which of the following is NOT true regarding consideration in a P&C policy?
    A. Part of the company's consideration are teh promises in teh policy
    B. part of the insured's consideration in the premium
    C. Part of the insured's consideration are teh statements on the application
    D. Part of the cmpany's consideration is the payment of a claim.
    D. Party of the company's consideration is the payment of a claim
    (this multiple choice question has been scrambled)
  30. Any ambiguities in a P&C policy will be resloved in a favor of the policy because the policy is a
    A. aleatory contract
    B. unilateral contact
    C. contract of adhesion
    D. conditional contract
    C. contract of adhesion
    (this multiple choice question has been scrambled)
  31. A person who has responsibility for the financial wellbeing of another is a(n)
    a. accountant
    b. attorney in fact
    c. broker
    d. fiduciary
    Fiduciary
  32. A binder can expire on all of the following EXCEPT:
    a. date of application
    b. day coverage goes into effect
    c. day the binder expires
    d. day following notifactions that the binder has been canclled
    date of application

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