1. Help to identify and establish the intent of the parties to the contract
Answer: Rulesof Construction
2. Each party is entitled to rely on the representation of the other, and each party should have
a reasonable expectation that the other is acting in good faith without attempts to conceal or
deceive.
Answer: Utmost good faith
3. A contract under which one party's performance is contingent on an uncertain event.
Answer: Aleatory Contract
4. has the power to bind the insurer
Answer: property and casualty agent
5. Insurance company drafts contract and the insured adheres to it. Anyambiguity resolved in
favor of the insured.
Answer: Adhesion Contract
6. Insured has completed paying the premium, only one party of the contract is legally
required to do something. Insured promises to pay the death benefit in the event of loss. Can not
be held for breach of contract.
Answer: Unilateral contract
7. This type of contract is conditional because the company only pays oncondition of a loss.
Answer: Conditional contract
8. The contract is between the insured and the insurer
Answer: Personal Contract
9. guarantee; assurance by seller. Any breach provides grounds for voidingthe contract.
Answer: warranty
10. a statement believed to be true to the best of one's knowledge.
Answer: representation
11. When an uninsurable individual applying for insurance may ask another person to
substitute for him to take the physical examination.
Answer: false pretenses
12. A false statement or lie that can render the contract void.
Answer: Misrepresentation
, 13. The failure to disclose material facts. Grounds for recission by eitherparty.
Answer: concealment (n)
14. Something crucial to acceptance of the risk.
Answer: Material Information or facts
15. An intentional act designed to deceive and induce another party to partwith something of
value.
Answer: fraud (n)
16. Rule of law disallowing oral evidence which disputes a written agreement.-
Answer: Parol Evidence Rule
17. A contract that may be legally avoided at the option of one or both of theparties.
Answer: Voidable Contract
18. an agreement of no legal effect.
Answer: Void Contract
19. Authority that is given not in writing but that is necessary for the agent totransact
insurance.
Answer: Implied Authority
20. A third party's reasonable belief that an agent has authority to act on theprincipal's behalf.
Answer: Apparent Authority
21. the authority of an agent, stated in the document or agreement creating theagency.
Answer: Express Authority
22. means that the agent carries "signs or evidences of authority.
Answer: Lingeringimplied authority
23. A legal impediment to denying a fact or restoring a right that has beenpreviously waived.
Answer: Estoppel
24. one that meets all of the requirements of a binding contract. Competent parties, legal
purpose, and consideration, not an actual written document.
Answer: -Valid Contract (Legal Contract)
25. Important documents with a custom folder.
Answer: Policyfolder
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