Podcast
Questions and Answers
Which characteristic of an insurance contract means that the contract is dependent on unknown future events?
Which characteristic of an insurance contract means that the contract is dependent on unknown future events?
- Utmost Good Faith
- Aleatory (correct)
- Adhesion
- Personal
What does the characteristic of 'unilateral' in an insurance contract indicate?
What does the characteristic of 'unilateral' in an insurance contract indicate?
- Both parties make a promise to pay
- Only the insurer makes a promise to pay (correct)
- Both parties dictate the terms
- Only one party dictates the terms
Which characteristic of an insurance contract refers to the promise by the insured to be totally honest about a claim?
Which characteristic of an insurance contract refers to the promise by the insured to be totally honest about a claim?
- Aleatory
- Personal
- Utmost Good Faith (correct)
- Adhesion
What does the characteristic of 'adhesion' in an insurance contract imply?
What does the characteristic of 'adhesion' in an insurance contract imply?
Which essential element of a legal contract involves mutual consent between the offeror and offeree?
Which essential element of a legal contract involves mutual consent between the offeror and offeree?
Flashcards
Aleatory Contract
Aleatory Contract
An insurance contract is based on uncertain future events, such as a house fire or car accident. The insurer only pays if the event happens.
Unilateral Contract
Unilateral Contract
Only the insurance company makes a promise to pay if a covered event occurs. The insured does not promise anything.
Utmost Good Faith
Utmost Good Faith
This principle requires both the insured and insurer to be completely honest and truthful when applying for insurance and filing claims.
Contract of Adhesion
Contract of Adhesion
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Agreement
Agreement
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