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17 Cards in this Set
- Front
- Back
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A knowing misrepresentation of truth or concealment of a material fact to induce another to act to his/her harm is what?
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Fraud. under O.S. law fraud is a felony and is punishable by a $10,000 dollor fine and 10 years in jail. |
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Give three examples of non-material fats to an insurance application. |
Having had a cold, flu or broken limb |
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Give three examples of material facts in an application for insurance. |
High blood pressure, heart attack or diabetes.
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What kind of a contract does not supply equal value from both parties? |
Aleatory contract: One party can benefit more than the other based on chance, or the occurrence of uncertain events. |
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When an insurance policy is ambiguous the court will move in favor of the: |
Insured or the policy owner |
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An applicants consideration in a contract is: |
Truthful statements on the application and the payment of premiums. |
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The insurers consideration in a contract is: |
A promise to provide benefits during times of hardship. |
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An insurance policy is written by only one party which is the insurance company. The insured must adhere to the contract terms without negotiation. What kind of contract is this? |
Contract of Adhesion |
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When two parties give something of value to a contract it is called? |
Consideration |
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Who supplies the acceptance in an agreement? |
The insurer when an insurance policy is issued the the applicant |
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Who makes the offer in an insurance agreement? |
The applicant when the application is completed and makes a premium payment. |
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What two things are required in an agreement |
An offer and an acceptance |
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Give examples of individuals who are not legally competent: |
*minors *intoxicated *legally insane |
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Competent parties can include |
*retired *handicapped *convicted felons |
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When must a party be considered legally competent to enter into and agreement? |
At the time of application |
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What is a legal purpose? |
A purpose that does not go against the public interest |
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What are the 4 essential elements of a legal contract? |
*Legal purpose *competent Parties *agreement *consideration |
