Contract and Insurance Quiz

What is a contract?

• A written letter

• A verbal promise

• A social agreement

• A legally binding agreement

Which of the following is NOT a type of contract?

• Oral contract

• Specialty contract

• Simple contract

• Contract of record

What is required for a simple contract to be legally binding?

• Seven basic elements

• A notary public

• Only a written document

• A witness present

Which of the following is an example of a specialty contract?

• Employment contract

• Child support

• Mortgage

• Life insurance

What does 'offer' refer to in contract law?

• A written contract

• A proposal made by one party

• A request for information

• A verbal agreement

What is a counteroffer?

• A request for more time

• An acceptance of an offer

• A rejection of an offer with a new proposal

• A verbal agreement

Which of the following is NOT a method of discharging a contract?

• By agreement

• By negotiation

• By breach of contract

• By performance

What does 'indemnity' refer to in insurance?

• A premium payment

• Compensation for losses

• A type of insurance policy

• A risk assessment

What is the principle of 'utmost good faith' in insurance?

• The insurer must pay all claims

• The insurance must be affordable

• The insured must provide all relevant information

• The policyholder must be honest

What is a 'no claim bonus'?

• A reward for having no claims

• A discount on premiums

• A penalty for claims

• A type of insurance policy