Florida Health 240 Insurance Exam (Graded A+)

Florida Health 240 Insurance Exam (Graded A+) Rules of Construction Help to identify and establish the intent of the parties to the contract Utmost good faith Each party is entitled to rely on the representation of the other, and each party should have a reasonable expectation that the other is acting in good faith without attempts to conceal or deceive. Aleatory Contract A contract under which one party's performance is contingent on an uncertain event. property and casualty agent has the power to bind the insurer Adhesion Contract Insurance company drafts contract and the insured adheres to it. Any ambiguity resolved in favor of the insured. Unilateral contract Insured has completed paying the premium, only one party of the contract is legally required to do something. Insured promises to pay the death benefit in the event of loss. Can not be held for breach of contract. Conditional contract This type of contract is conditional because the company only pays on condition of a loss. Personal Contract The contract is between the insured and the insurer warranty guarantee; assurance by seller. Any breach provides grounds for voiding the contract. representation a statement believed to be true to the best of one's knowledge. false pretenses When an uninsurable individual applying for insurance may ask another person to substitute for him to take the physical examination. Misrepresentation A false statement or lie that can render the contract void. concealment (n) The failure to disclose material facts. Grounds for recission by either party. Material Information or facts Something crucial to acceptance of the risk. fraud (n) An intentional act designed to deceive and induce another party to part with something of value. Parol Evidence Rule Rule of law disallowing oral evidence which disputes a written agreement. Voidable Contract A contract that may be legally avoided at the option of one or both of the parties. Void Contract an agreement of no legal effect. Implied Authority Authority that is given not in writing but that is necessary for the agent to transact insurance. Apparent Authority A third party's reasonable belief that an agent has authority to act on the principal's behalf. Express Authority the authority of an agent, stated in the document or agreement creating the agency. Lingering implied authority means that the agent carries "signs or evidences of authority. Estoppel A legal impediment to denying a fact or restoring a right that has been previously waived. Valid Contract (Legal Contract) one that meets all of the requirements of a binding contract. Competent parties, legal purpose, and consideration, not an actual written document. Policyfolder Important documents with a custom folder. Plan Sponsors Policyholder responsible for administering pan and making premiums to insurance company. Employee or individual employer group Employer is the policy-owner and establishes eligible class of employees to be covered under group policy. Multiple employer group Several employers forming a trust to combine their workers for life insurance eligibility. Multiple Employer Trust (MET) A legal entity of small business owners grouped together to buy life insurance. Taft-Hartley Act a law that restricted the power of labor union