Question: A contract is considered void in all of the following situations EXCEPT

Answer: When consideration is unequal

Question: An insurance contract may be voided if a misrepresentation found on the application is determined to be

Answer: material

Question: Which of these is true regarding the exchange of consideration among parties involved in an insurance contract?

Answer: Can be unequal

Question: A producer working for an insurance company may be personally liable for

Answer: acts performed which are prohibited in the agency contract

Question: All of these statements correctly describe an aleatory contract EXCEPT

Answer: Only one party makes any kind of legally enforceable offer

Question: Greg applies for insurance and makes a false statement on the application that will influence whether or not the insurer will accept the risk. Greg’s false statement is called a(n)

Answer: material misrepresentation

Question: Which of the following relationships demonstrates insurable interest in the absence of economic interest?

Answer: Marriage partners

Question: Voluntarily terminating an insurance policy is also known as

Answer: Cancellation

Question: An arrangement where an individual is authorized to act on behalf of another person or company is established through

Answer: The law of agency

Question: In what way are insurance policies said to be aleatory?

Answer: Involves the potential for the unequal exchange of value