Loma 311 Module 2 Exam Questions
and Answers 100% Pass
choice of laws provision - ✔✔usually specifies a jurisdiction with which at least one
party has a connection.
In individual life insurance, state law may specify that this jurisdiction is the state in
which the policy is issued or delivered, which is generally
the state of residence of the insured at the time of purchase. This jurisdiction is
sometimes referred to as the SITUS of the contract.
Courts typically apply the laws of the place designated by the parties and referred to in
the contract.
If the parties did not specify which jurisdiction's laws are to govern their contract, the
governing laws are determined depending on the parties' location:
-All contracting parties are in the same jurisdiction. The laws
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,-of that jurisdiction generally govern the contract.
- The contracting parties are in more than one jurisdiction. The
conflict of law rules adopted by the affected jurisdictions determine which jurisdiction's
laws govern the contract.
IE: An insurance company headquartered in State A created an insurance contract when
the policyowner, a resident of State B, and the insurer's branch office in State B, signed
the contract in State B. The insurer specified that
the contract would be governed by the laws of State C.
In the United States, the last acts necessary to complete the formation of
a life insurance contract are : - ✔✔(1) payment of the initial premium and (2)
delivery of the policy to the policyowner. Thus, a life insurance contract
typically is considered created in the state in which the policy is delivered
or the initial premium is paid, whichever occurs later. Generally, the law that governs a
life insurance contract when it is issued continues to govern for the life of the contract.
center of gravity rule - ✔✔a court applies the law of the jurisdiction that has the
GREATEST INTEREST in the contract.
life insurance contract is - ✔✔an informal, unilateral, aleatory contract of adhesion.
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,formal contract - ✔✔is a contract that is enforceable because the parties met certain
formalities concerning the form of the agreement.
Today, only a few types of contracts require these formalities. Many jurisdictions, for
example, require contracts for the sale of real property to be formal contracts.
informal contract - ✔✔a contract that is enforceable because the parties met
requirements concerning the substance of the agreement rather than requirements
concerning the form of the agreement.
With certain exceptions, an informal contract may be either oral or written. Informal
contracts expressed in writing do not
need a seal to be enforceable.
bilateral contract - ✔✔a contract under which both parties make legally enforceable
promises.
For example, contracts for the sale of goods generally are bilateral contracts,
because both parties to the contract make an enforceable promise when they enter into
the agreement. The purchasing party promises to pay the agreed-upon price, and the
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, selling party agrees to provide the purchaser with specified goods at the agreed-upon
price.
Unilateral Contract - ✔✔a contract under which only one of the contracting parties
makes a legally enforceable promise. A life insurance policy is an example of a
unilateral
contract.
commutative contract - ✔✔an agreement under which
the parties specify in advance the values that they will exchange, and
the parties generally exchange items or services that they think are of
relatively equal value. For example, contracts often involve the provision
of specific services in exchange for a stated monetary amount of comparable value.
EXAMPLE: An Annuity contract
Aleatory Contract - ✔✔one party provides something of value to another party in
exchange for a conditional promise.
Another feature of an aleatory contract is that if the specified event occurs, then one
party may receive something of greater value than what the party gave in exchange for
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and Answers 100% Pass
choice of laws provision - ✔✔usually specifies a jurisdiction with which at least one
party has a connection.
In individual life insurance, state law may specify that this jurisdiction is the state in
which the policy is issued or delivered, which is generally
the state of residence of the insured at the time of purchase. This jurisdiction is
sometimes referred to as the SITUS of the contract.
Courts typically apply the laws of the place designated by the parties and referred to in
the contract.
If the parties did not specify which jurisdiction's laws are to govern their contract, the
governing laws are determined depending on the parties' location:
-All contracting parties are in the same jurisdiction. The laws
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,-of that jurisdiction generally govern the contract.
- The contracting parties are in more than one jurisdiction. The
conflict of law rules adopted by the affected jurisdictions determine which jurisdiction's
laws govern the contract.
IE: An insurance company headquartered in State A created an insurance contract when
the policyowner, a resident of State B, and the insurer's branch office in State B, signed
the contract in State B. The insurer specified that
the contract would be governed by the laws of State C.
In the United States, the last acts necessary to complete the formation of
a life insurance contract are : - ✔✔(1) payment of the initial premium and (2)
delivery of the policy to the policyowner. Thus, a life insurance contract
typically is considered created in the state in which the policy is delivered
or the initial premium is paid, whichever occurs later. Generally, the law that governs a
life insurance contract when it is issued continues to govern for the life of the contract.
center of gravity rule - ✔✔a court applies the law of the jurisdiction that has the
GREATEST INTEREST in the contract.
life insurance contract is - ✔✔an informal, unilateral, aleatory contract of adhesion.
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,formal contract - ✔✔is a contract that is enforceable because the parties met certain
formalities concerning the form of the agreement.
Today, only a few types of contracts require these formalities. Many jurisdictions, for
example, require contracts for the sale of real property to be formal contracts.
informal contract - ✔✔a contract that is enforceable because the parties met
requirements concerning the substance of the agreement rather than requirements
concerning the form of the agreement.
With certain exceptions, an informal contract may be either oral or written. Informal
contracts expressed in writing do not
need a seal to be enforceable.
bilateral contract - ✔✔a contract under which both parties make legally enforceable
promises.
For example, contracts for the sale of goods generally are bilateral contracts,
because both parties to the contract make an enforceable promise when they enter into
the agreement. The purchasing party promises to pay the agreed-upon price, and the
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, selling party agrees to provide the purchaser with specified goods at the agreed-upon
price.
Unilateral Contract - ✔✔a contract under which only one of the contracting parties
makes a legally enforceable promise. A life insurance policy is an example of a
unilateral
contract.
commutative contract - ✔✔an agreement under which
the parties specify in advance the values that they will exchange, and
the parties generally exchange items or services that they think are of
relatively equal value. For example, contracts often involve the provision
of specific services in exchange for a stated monetary amount of comparable value.
EXAMPLE: An Annuity contract
Aleatory Contract - ✔✔one party provides something of value to another party in
exchange for a conditional promise.
Another feature of an aleatory contract is that if the specified event occurs, then one
party may receive something of greater value than what the party gave in exchange for
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