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Which Contract Element Is Insurable Interest

Dwayne Morise

Question: Which contract element is insurable interest a component of?

  1. Competent parties

  2. B. Offer and acceptance

  3. C. Consideration

  4. D. Legal purpose

  5. Answer: Legal purpose

  6. Question: In an insurance contract, the element that shows each party is giving something of value is called?

  7. A. offer

  8. B. acceptance

  9. C. consideration

  10. D. purpose

  11. Answer: Consideration

  12. Question: What makes an insurance policy a unilateral contract?

  13. A. Only the insured pays the premium

  14. B. Only the insured can change the provisions

  15. C. Only the insurer is legally bound

  16. D. Only the insured is legally bound

  17. Answer: Only the insurer is legally bound

  18. Question: The authority granted to a licensed producer is provided via the?

  19. A. producer’s apparent authority

  20. B. written contract

  21. C. Law of Agency

  22. D. Principal Capacity

  23. Answer: Law of Agency

  24. Question: Legal purpose is a term used in contract law meaning?

  25. A. there must be an offer and acceptance

  26. B. the contract must be aleatory

  27. C. there must be legal reasons for entering into the contract

  28. D. the contract must be a contract of adhesion

  29. Answer: There must be legal reasons for entering into the contract

  30. Question: All of the following are elements of an insurance policy EXCEPT?

  31. A. definitions

  32. B. other insurance

  33. C. claim forms

  34. D. conditions

  35. Answer: claim forms

  36. Question: According to life insurance contract law, insurable interest exists?

  37. A. when any business relationship exists

  38. B. at the time of application

  39. C. at the time of death

  40. D. only when determined by a judge

  41. Answer: at the time of application

  42. Question: Insurable interest does NOT occur in which of the following relationships?

  43. A. Sister and brother

  44. B. Parent and children

  45. C. Business partners

  46. D. Business owner and business client

  47. Answer: Business owner and business client

  48. Question:

  49. Answer: 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

  50. Question: The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as?

  51. A. Apparent

  52. B. Estoppel

  53. C. Aleatory

  54. D. Unilateral

  55. Answer: Aleatory