IDAHO PROPERTY AND CASUALTY
Prep Exam 4 Questions With 100% Correct
Answers Latest Update Grade A+
Elements of a Legal Contract
Correct Answer: Consideration, Competent parties, Offer and Acceptance, Legal
Object
offer and acceptance
Correct Answer: Makes offer when submitting a contract , acceptances takes place
when underwriter approves application
Consideration
Correct Answer: Something of value that each party gives to each other , the
consideration being the part where the insured pays a premium and the insurer pays in
event of loss.
Parties to a contract
Correct Answer: Must be capable of entering into a contract in the eyes of the law.
Both parties must be of legal age, mentally competent, and not under the influence .
Legal Purpose
,Correct Answer: Must be legal and not against public policy
, reasonable expectations
Correct Answer: An insured could reasonably expect coverage of agent implies
coverage through advertising sales or other means
indemnity
Correct Answer: I'm event of loss, an insured or beneficiary is only allowed to collect
the extent of financial loss and cannot gain profit from loss.
Utmost good faith
Correct Answer: An obligation to act in complete honesty and to disclose all relevant
facts. Implies there will be no fraud
Representations and Misrepresentations
Correct Answer: Representations are statements made true to the best of ones
knowledge. Misrepresentations are untrue statements made on an application and
could void the contract and be considered fraud if done intentionally.
Warranties
Correct Answer: Absolutely true statement on which the validity of insurance policies
depend on
Concealment
Prep Exam 4 Questions With 100% Correct
Answers Latest Update Grade A+
Elements of a Legal Contract
Correct Answer: Consideration, Competent parties, Offer and Acceptance, Legal
Object
offer and acceptance
Correct Answer: Makes offer when submitting a contract , acceptances takes place
when underwriter approves application
Consideration
Correct Answer: Something of value that each party gives to each other , the
consideration being the part where the insured pays a premium and the insurer pays in
event of loss.
Parties to a contract
Correct Answer: Must be capable of entering into a contract in the eyes of the law.
Both parties must be of legal age, mentally competent, and not under the influence .
Legal Purpose
,Correct Answer: Must be legal and not against public policy
, reasonable expectations
Correct Answer: An insured could reasonably expect coverage of agent implies
coverage through advertising sales or other means
indemnity
Correct Answer: I'm event of loss, an insured or beneficiary is only allowed to collect
the extent of financial loss and cannot gain profit from loss.
Utmost good faith
Correct Answer: An obligation to act in complete honesty and to disclose all relevant
facts. Implies there will be no fraud
Representations and Misrepresentations
Correct Answer: Representations are statements made true to the best of ones
knowledge. Misrepresentations are untrue statements made on an application and
could void the contract and be considered fraud if done intentionally.
Warranties
Correct Answer: Absolutely true statement on which the validity of insurance policies
depend on
Concealment
