Fl Life, Health and Annuities Licensing 2-15 Complete Solution With Correct Answers

3 ways insurance contracts are different than other legally binding documents Number one. They are aleatory. Meaning the insured pays a premium but may not receive anything back. Number 2. They are contracts of adhesion meaning the contract was prepared by one party. number 3. They are unilateral meaning only the insurance company promises anything in the contract How long-life insurance has to challenge the validity of a contract due to fraud Typically, 2 years. Can't contest- after if found out fraud occurred during application. Fiduciary A person who holds a position of special trust and confidence. Example: when they accept premium payments on behalf of the insurer that person is a fiduciary. Express authority The intended power given by the principal to the agent