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Insurance transaction includes: Answer By mail or other means:
- Solicitation
- Negotiation
- Sale
- Advising an individual about coverage
Elements of a legal contract Answer-Agreement (offer and acceptance)
-Consideration
- Competent parties
- Legal purpose
-Negotiation does NOT need to happen
Who make the offer in an insurance application Answer Applicant
When does acceptance take place Answer An insurers underwriter approves the application and issues a policy
The binding force in any contract - Answer - Consideration
- insurer promises to pay in the event of a loss
Contract of adhesion - Answer-Prepared by the insurer and accepted or rejected by the insured -""Take it or leave it" basis
Insurance contracts are - Answer - Aleatory
- exchange of unequal amounts of values
Unilateral contract Answer-only one of the parties is legally bound -"one-way contract"
"When does an insurance policy go into effect" - Answer - When the insured receives it
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