LOMA 281 Module 1 Lesson 3 Correct 100%

LOMA 281 Module 1 Lesson 3
Correct 100%
Insurance policy - ANSWER A legally enforceable contract between a policyowner who applies for
and owns the policy and the insurer that issues the policy



Unilateral contract - ANSWER A contract in which only one of the parties makes a legally enforceable
promise when entering into the contract. (life insurance)



Bilateral contract - ANSWER A contract in which both parties make legally enforceable promises
when they enter into the contract




Bargaining contract - ANSWER A contract in which both parties, as equals, set the terms and
conditions of the contract



Contract of adhesion - ANSWER A contract that one party prepares and that the other party must
accept or reject as a whole, generally without any bargaining between the parties to the agreement
(life insurance)



Informal contract - ANSWER A contract that is enforceable because the parties to the contract met
requirements concerning the substance of the agreement rather than requirements concerning the
form of the agreement (life insurance)



Commutative contract - ANSWER A contract under which the parties specify in advance the values
that they will exchange; moreover, the parties generally exchange items or services that they think
are of relatively equal value



Aleatory contract - ANSWER A contract under which one party provides something of value to
another party in exchange for a conditional promise. (life insurance)



Formal contract - ANSWER A contract that is enforceable because the parties met certain formalities
concerning the form of the agreement.