Questions and Answers
Which of the following is NOT a requirement for a legal contract in health insurance?
What characteristic of a contract indicates that one party is bound to fulfill obligations while the other is not?
Which source provides detailed and accurate information regarding an applicant's medical history?
Which term best describes a contract where one party prepares it and the other must accept it as is?
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What type of report may help share adverse medical information among insurance companies?
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Which element of a contract ensures that both parties are of legal age and sound mental capacity?
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Study Notes
Contract Law
- Agreement: Involves an offer from one party and acceptance by another.
- Consideration: Reflects the exchange of premiums and representations by the insured, and the insurer's payment of claims.
- Competent Parties: Parties must be of legal age, possess sound mental capacity, and not be under the influence of drugs or alcohol.
- Legal Purpose: Contracts must align with public policy and not be illegal.
Elements of a Legal Contract
- Adhesion: Typically features a contract prepared by one party which the other must accept without negotiation.
- Aleatory: Involves an exchange where the amounts involved may be unequal, with outcomes based on chance.
- Conditional: Execution and validity depend on the occurrence of specified conditions.
- Unilateral: Only one party has a legal obligation to perform, often resulting in a promise from the insurer upon acceptance of the premium.
Sources of Insurability Information
- Attending Physician Report: Provides comprehensive and precise medical history for assessing applicant health status.
- MIB Report: Aids insurers by sharing adverse medical information, allowing for better risk assessment.
- Credit Reports: Include consumer's credit history, character, or reputation, vital for understanding risk potential. Comprises consumer reports (credit-related data) and investigative consumer reports (information gathered through personal evaluations).
- Medical Exam Report: Conducted by qualified physicians or paramedics, it offers detailed health assessments required during the underwriting process.
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Description
Explore the fundamental concepts of contract law, including the essential elements required for a legal contract. This quiz covers topics such as agreement, consideration, and the characteristics of competent parties, as well as various types of contracts. Test your understanding of these principles and their applications in legal contexts.
