Lapse - answer-policy termination due to nonpayment of premium
Premium - answer-amount paid to the insurance company for the insurance policy
"Insurance Transaction" (by email or other means) - answer-Solicitation
Negotiations
Sale
Advising an individual concerning coverage or claims
El...
Lapse - answer-policy termination due to nonpayment of premium
Premium - answer-amount paid to the insurance company for the insurance policy
"Insurance Transaction" (by email or other means) - answer-Solicitation
Negotiations
Sale
Advising an individual concerning coverage or claims
Elements of legal contract to be legally binding
(4 Essential elements) - answer-1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
Consideration
(contract) - answer-Is something of value that each party gives to another.
Insured = payment on premium
Insurer = promise to pay in event of loss.
Competent Parties - answer-Must be entering contract in eyes of the law.
-Both parties must be legal age, mentally competent, not under influence of alcohol or drugs.
Contract of Adhesion - answer-prepared by one party (insurer) and accepted or rejected by the
other party.
Aleatory Contract - answer-Means exchange of unequal amounts or values. Premium paid is
small in relation to amount paid by insurer in event of loss.
Unilateral Contract - answer-Only one parties to the contract is legally bound to do anything.
(Insured = no legally binding promises, Insurer promises to pay losses covered by policy)
Conditional Contract - answer-Certain conditions met by policy owner and company in order for
the contract to be executed. (Proof of loss...)
Warranty - answer-Absolutely true statement upon which the validity of insurance policy
depends.
Representations - answer-Statements believed to be true to best of one's knowledge.
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