2-LEGAL CONCEPTS

In an insurance contract, the insurer is the only party who makes legally enforceable promise, what kind of contract is this?

• Subrogation

• Unenforceable

• Adhesion

• Unilateral

A policy of adhesion can only be modified by whom?

• The agent

• The applicant

• The primary beneficiary

• The insurance company

Taking receipts of premiums and holding them for the insurance company is an example of:

• Commingling

• Misappropriation

• Theft

• Fiduciary responsibility

Which of these is NOT considered to be an element of an insurance contract?

• The offer

• acceptance

• Negotiating

• Consideration

Life and Health insurance policies are:

• Multi-lateral contracts

• Bilateral contracts

• Unilateral contract

• Non-lateral contracts

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have:

• all statements be warranties

• Insurable Interest in the proposed insured

• The agent complete a third-party application

• All those involved be family-related

E and F are business partners. Each takes out a $500,000 life Insurance policy on the other,

naming himself as primary beneficiary. E and F eventually terminates their business, and four months later E dies. Although E was married with three children at the time of his death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E’s life insurance policy be directed to?

• F

• The dissolved

• E's family

• E's estate

Which of these arrangements allows one to bypass insurable interest laws?

• Concealment

• Indemnity contract

• Contract of adhesion

• Investor Originated Life Insurance

Which of the following consist of an offer, acceptance, and consideration?

• Warranty

• Estoppel

• Contract

• Representation

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

• Aleatory

• Adhesion

• Unilateral

• Consideration