XCEL SOLUTIONS LEGAL CONCEPTS
EXAM QUESTIONS AND ANSWERS
Which contract element is insurable interest a component of?
A. Offer and acceptance
B. Consideration
C. Competent parties
D. Legal purpose - ANSWER-D. Legal purpose
Which of the following BEST describes a conditional insurance contract?
A. A contract where only one party makes any kind of enforceable contract
B. A contract that requires certain conditions or acts by the insured individual
C. A contract that has the potential for the unequal exchange of consideration for
both parties
D. A contract where one party "Adheres" to the terms of the contract - ANSWER-B.
A contract that requires certain conditions or acts by the insured individual
According to life insurance contract law, insurable interest exists
A. At the time of application
B. Only when determined by a judge
C. At the time of death
D. When any business relationship exists - ANSWER-A. At the time of application
In an insurance contract, the element that shows each party is giving something of
value is called
A. Purpose
B. Acceptance
C. Consideration
D. Offer - ANSWER-C. Consideration
In order for a contract to be valid, it must
A. Be in writing
B. Contain an offer and acceptance
C. Be filed with the state
D. Be signed and witnessed by an attorney - ANSWER-B. Contain an offer and
acceptance
According to the principle of Utmost Good Faith, the insured will answer questions
on the application to the best of their knowledge and pay the required premium,
while the insurer will deal fairly with the insured and it's
EXAM QUESTIONS AND ANSWERS
Which contract element is insurable interest a component of?
A. Offer and acceptance
B. Consideration
C. Competent parties
D. Legal purpose - ANSWER-D. Legal purpose
Which of the following BEST describes a conditional insurance contract?
A. A contract where only one party makes any kind of enforceable contract
B. A contract that requires certain conditions or acts by the insured individual
C. A contract that has the potential for the unequal exchange of consideration for
both parties
D. A contract where one party "Adheres" to the terms of the contract - ANSWER-B.
A contract that requires certain conditions or acts by the insured individual
According to life insurance contract law, insurable interest exists
A. At the time of application
B. Only when determined by a judge
C. At the time of death
D. When any business relationship exists - ANSWER-A. At the time of application
In an insurance contract, the element that shows each party is giving something of
value is called
A. Purpose
B. Acceptance
C. Consideration
D. Offer - ANSWER-C. Consideration
In order for a contract to be valid, it must
A. Be in writing
B. Contain an offer and acceptance
C. Be filed with the state
D. Be signed and witnessed by an attorney - ANSWER-B. Contain an offer and
acceptance
According to the principle of Utmost Good Faith, the insured will answer questions
on the application to the best of their knowledge and pay the required premium,
while the insurer will deal fairly with the insured and it's
