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21 Cards in this Set
- Front
- Back
A contract is a legally enforceable ___ between two or more legally competent parties
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Agreement
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A contract's agreement is composed of a(n)
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Offer and Acceptance
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To make a contract legally binding, there must be an exchange of values. This is called what?
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Consideration
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An individual who handles the legal affairs of a child is called a(n)?
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Guardian
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An alternative proposal by one of the parties during a contract negotiation is referred to as a
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Counter-offer
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The applicant's consideration consists of ___ and ____
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money (settlement, or payment of the first premium) and statements made in the application.
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The insurance company's consideration is the ___ contained in the policy.
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Promise
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A prepaid application, in legal terms, is considered to be a(n) ____ by the applicant.
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Offer
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The issuance and delivery of a policy exactly as requested on a prepaid application is legally called a(n)
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Acceptance
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One form of an interim insuring agreement that makes a qualified promise to the applicant is called a
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Conditional receipt
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The first premium payment is normally collected by the
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Agent
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When a Conditional Receipt is issued, the effective date of coverage is the ____ date or the date of the ____, whichever comes last, If the applicant is insurable for the policy applied for on that date.
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Application, Medical exam
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The concept which states that a person must be in a position to lose something of value in order to buy life or health insurance on someone else is called
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Insurable interest
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A ____ is the literal or absolute truth.
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Warranty
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Hiding the truth is referred to as
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Concealment
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If an applicant lies on an application for insurance, it is called a
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Misrepresentation
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What are statements made by an applicant that are taken as accurate to the best of his or her knowledge and belief.
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Representations
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Policies with a face value, such as life insurance policies, are referred to as ____ contracts.
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Stated amount (valued)
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The voluntary giving up of a legal right is called a
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Waiver
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What is the act of deception or cheating another in order to financially benefit oneself?
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Fraud
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As an agent, you are the legal representative of the
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Insurance company
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