Florida Health 240 Insurance/ 233 Q&A/ 2024-
2025.
Help to identify and establish the intent of the parties to the contract - Answer:
Rules of Construction
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. - Answer: Utmost good faith
A contract under which one party's performance is contingent on an uncertain
event. - Answer: Aleatory Contract
has the power to bind the insurer - Answer: property and casualty agent
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,Insurance company drafts contract and the insured adheres to it. Any ambiguity
resolved in favor of the insured. - Answer: Adhesion 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. - Answer: Unilateral contract
This type of contract is conditional because the company only pays on condition of
a loss. - Answer: Conditional contract
The contract is between the insured and the insurer - Answer: Personal Contract
guarantee; assurance by seller. Any breach provides grounds for voiding the
contract. - Answer: warranty
a statement believed to be true to the best of one's knowledge. - Answer:
representation
When an uninsurable individual applying for insurance may ask another person to
substitute for him to take the physical examination. - Answer: false pretenses
A false statement or lie that can render the contract void. - Answer:
Misrepresentation
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, The failure to disclose material facts. Grounds for recission by either party. -
Answer: concealment (n)
Something crucial to acceptance of the risk. - Answer: Material Information or
facts
An intentional act designed to deceive and induce another party to part with
something of value. - Answer: fraud (n)
Rule of law disallowing oral evidence which disputes a written agreement. -
Answer: Parol Evidence Rule
A contract that may be legally avoided at the option of one or both of the parties.
- Answer: Voidable Contract
an agreement of no legal effect. - Answer: Void Contract
Authority that is given not in writing but that is necessary for the agent to transact
insurance. - Answer: Implied Authority
A third party's reasonable belief that an agent has authority to act on the
principal's behalf. - Answer: Apparent Authority
the authority of an agent, stated in the document or agreement creating the
agency. - Answer: Express Authority
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2025.
Help to identify and establish the intent of the parties to the contract - Answer:
Rules of Construction
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. - Answer: Utmost good faith
A contract under which one party's performance is contingent on an uncertain
event. - Answer: Aleatory Contract
has the power to bind the insurer - Answer: property and casualty agent
Page 1 of 28
,Insurance company drafts contract and the insured adheres to it. Any ambiguity
resolved in favor of the insured. - Answer: Adhesion 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. - Answer: Unilateral contract
This type of contract is conditional because the company only pays on condition of
a loss. - Answer: Conditional contract
The contract is between the insured and the insurer - Answer: Personal Contract
guarantee; assurance by seller. Any breach provides grounds for voiding the
contract. - Answer: warranty
a statement believed to be true to the best of one's knowledge. - Answer:
representation
When an uninsurable individual applying for insurance may ask another person to
substitute for him to take the physical examination. - Answer: false pretenses
A false statement or lie that can render the contract void. - Answer:
Misrepresentation
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, The failure to disclose material facts. Grounds for recission by either party. -
Answer: concealment (n)
Something crucial to acceptance of the risk. - Answer: Material Information or
facts
An intentional act designed to deceive and induce another party to part with
something of value. - Answer: fraud (n)
Rule of law disallowing oral evidence which disputes a written agreement. -
Answer: Parol Evidence Rule
A contract that may be legally avoided at the option of one or both of the parties.
- Answer: Voidable Contract
an agreement of no legal effect. - Answer: Void Contract
Authority that is given not in writing but that is necessary for the agent to transact
insurance. - Answer: Implied Authority
A third party's reasonable belief that an agent has authority to act on the
principal's behalf. - Answer: Apparent Authority
the authority of an agent, stated in the document or agreement creating the
agency. - Answer: Express Authority
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