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7 Cards in this Set
- Front
- Back
Four essential elements of insurance contract |
1. agreement - offer and acceptance 2. consideration 3. competent parties 4. legal purpose |
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Acceptance |
takes place when an insurer's underwriter approves the application and issues a policy |
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Consideration |
something of value that each party gives to the other. |
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Representations |
statements believed to be true to the best of one's knowledge, but they are not guaranteed to be true. |
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misrepresentations |
untrue statements on the application that could void the contract |
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warranty |
is an absolutely true statement upon which the validity of the insurance policy depends. |
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concealment |
is the legal term for the intentional withholding of a material fact which is crucial in making an underwriting decision. |