State Farm study guide exam questions and answers

State Farm study guide exam questions and answers utmost good faith - Answer-both parties must act honestly and openly in order for the contract to be valid adhesion - Answer-one party sets the terms of the contract; the other may simply agree or not agree unilateral - Answer-only the insurer makes a promise to act; the insured can void contract at any time personal - Answer-the insured person is protected from losses, not the covered property. conditional - Answer-the insurer must only honor the contract if the insured meets certain conditions. aleatory - Answer-the exectution of the contract depends on an unknown future event. an insurance applicat revealing his convictions for drunk driving to an insurer is an example of - Answer-utmost good faith. tom purchases a new car from his local car dealer. he also decides to get insurance coverage that will pay to repair the car if he were to get into an accident. this is because tom wants to protect - Answer-his own financial interest in the car. tom decides to purchase an insurance policy to protect his home. according to the definition of a personal contract, which of the following most accurately describes what tomes insurance actually protects - Answer-toms financial interest in thee home what is not true about an aleatory contract - Answer-in an aleatory contract, the amount of benefit to the insured and insurer is equal. what does D.I.C.E stand for? - Answer-declarations page (and definitions), insuring agreement, conditions and exclusions (and endorsements) 'we will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy.' in which section of the insurance policy might this statement be found? - Answer-insuring agreement