P&C CH 2 Contract LAW

What is an insurance policy ?

A contract is agreement between two or more _______

_______ and _______ are the first two parts of a valid contract.

The Application with premium given to the company by the applican is an ______

The delivery of the policy signals the company has ____ the _____

The premium and the statements on teh application are the are the applicant's __________.

The promise to pay is the Insurance Company's _______.

Insurance contracts are Unilateral, Aleatory, and are _____ of _______

Unilateral means

Aleatory means:

Adhesion means:

Underwritting invloves selection and ____ of ____

A statement by the applicant that must be absolutely true is called what?

A statement the applicant thinks is true is a _________.

A lie is what?

Not revealing the entire truth is called?

__________ and ___________ can result in the policy being contrested.

The ____   _____ ____   ____ governs the company's actions when checking credit history.

Credit Reporting Agencies can only keep information for how many years?

What are binders?

Binders may be ______ or ________.

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.

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

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

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

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

An incorrect statement made intentionally on an auto insurance application is a
a. fraud
b. warranty
c. misrepresentation
d. concealment

A binder is a(n)
A. application
B. endorsement
C. interim insuring agreement
D. counteroffer

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.

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

A person who has responsibility for the financial wellbeing of another is a(n)
a. accountant
b. attorney in fact
c. broker
d. fiduciary

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