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Cards In This Set
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Speculative risk
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Is a feature of insurance.
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Not alll risks are insurable. Certain characteristics must be present for a particular risk to be concidered an isurable risk. A characteristic that might make a risk uninsurable is a(n)
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Risk of loss that exists because of a catastrophic exposure.
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In the property and casuality insurance field, insurable interest must exist at the time
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The loss occurs.
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An insurer incorported under the laws of the state in which it is operating is considered to be a(n) insurer.
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Domestic
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An insurance company owned by its policyowners, who receive a return of unused premiums in the form of policy dividends, is a(n)
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Mutual company
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An available method for dealing with an exposure to risk is NOT the risk.
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Ascertaining
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An agent's obligation to act in an insurance applicant's or insured's best interest, based on the faith and trust placed in the agent by members of the insurance-buying public, is known as
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A fiduciary duty.
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T or F - (An agency relationship between an insurance agent and insurer)
An agent has unlimited authority over insurance matters within agency.
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False
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The authority of an insurance agent that is spelled out in the written words of the agency contract between the agent and the insurer is authority.
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Express
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Under contract law, the actions of a party intentionally and voluntarily giving up a known right is a
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Waiver.
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When a party appears to have given up a particular right, by acts or by inaction, that another party has relied on, the legal basis for asserting the original right may have been lost. This is known as the legal doctrine of
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Estoppel.
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The element that is unnecessary for formation of a legally valid contract is
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Signatures of each party.
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In the formation of a legal contract, each party must give something of value. Under contract law, this is referred to as
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Consideration.
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Because an insurer writes the policy language and the insured has little or no control over the content, any ambiguityin the wording is usually resolved in favor of the insured; thus insurance policies are said to be
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Contracts of adhesion.
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When an insurance applicant makes a statement on an application that becomes part of the contract and includes a promise by the insured, the statement is considered to be a
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Representation.
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