Only the insurer is legally bound
What makes an insurance policy a unilateral contract?
concealment
Intentional withholding of material facts that would affect an insurance policy's validity is called a(n)
there must be legal reasons for entering into the contract
Legal purpose is a term used in contract law meaning
representation
What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as?
Consideration clause
Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium".
express authority
When the principal gives the agent authority in writing, it's referred to as
Aleatory
The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as
Tom
Bob and Tom start a business. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Eventually, they retire and dissolve the
Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties
What is implied authority defined as?
consideration
In an insurance contract, the element that shows each party is giving something of value is called
contain an offer and acceptance
In order for a contract to be valid, it must
errors and omissions
A professional liability for which producers can be sued for mistakes of putting a policy into effect is called
Business owner and business client
Insurable interest does NOT occur in which of the following relationships?
implied
The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority?
Apparent
The deeds and actions of a producer indicate what kind of authority?