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16 Cards in this Set
- Front
- Back
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HOW MANY PARTS ARE THERE TO A LEGAL CONTRACT &
WHAT ARE THE PARTS? |
There are four parts: Agreement, Consideration, Competent Parties & Legal Purpose
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WHAT ARE THE SIX DISTINCT CHARACTERISTICS OF AN "INSURANCE" CONTRACT
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1. Unilateral, 2. Adhesion, 3. Aleatory, 4. Conditional, 5. Personal, 6. Utmost Good Faith
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REPRESENTATIONS
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Statements made by an applicant to the best of their knowledge for insurance, that are recorded on the application.
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MISREPRESENTATIONS
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Incorrect statements made by an applicant. Ex: (An applicant incorrectly states their residence address on an application.) Misrepresentations generally do not affect coverage unless they are FRAUDELENT in nature.
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WARRANTY
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A statement that is guaranteed to be absolutely true.
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CONCEALMENT & FRAUD
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The failure to disclose material facts is considered "concealment" Fraud is committed when an individual intentionally or deliberately deceives another. Concealment is grounds for voiding the policy.
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WAIVER
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The intentional abandonment or voluntary relinquishment of a known right as found in the policy.
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ESTOPPEL
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Estoppel is a term of law:
Estoppel STOPS the company from useing a previously waived provision. |
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WHAT ARE THE 4 SECTIONS OF AN INSURANCE POLICY?
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D-Declarations
I-Insuring Provision C-Conditions E-Exclusions |
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WHAT IS THE "FAIR CREDIT REPORTING ACT OF 1970"
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A federal law that permits the insurer (the company) to conduct consumer or other investigative reports on applicants for insurance.
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HOW MANY TYPES OF PRODUCER AUTHORITY ARE THERE? WHAT ARE THEY?
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1. Actual/Express Authority
2. Implied Authority 3. Apparent Authority |
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STOCK INSURER
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A Stock Insurer is owned by the holders of its capital stock. Any profits earned are divided among stockholders.
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MUTUAL INSURER
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An insurance company without capital stock that is owned by its policyholders.
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ACCORDING TO DOMICILE
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Insurers may be classified according to where they are chartered.
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DOMESTIC INSURER
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One that is incorporated or chartered in a PARTICULAR STATE & its principal or home office is located in that state.
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FOREIGN INSURER
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One that is AUTHORIZED to operate in a particular state but is chartered or domiciled in another state.
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