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LIFE INSURANCE: CONTRACT LAW
QUESTIONS AND ANSWERS 2025
Contract law -correct answer- Law that refers to agreements
between individuals and entities that are binding
Tort Law -correct answer- Law that defines and enforces duties
and rights among private individuals that are not based on
contractual agreements
Concealment -correct answer- Occurs when a person withholds
a material fact that is crucial to making a decision. In insurance,
this involves withholding information that would be crucial to
underwriting decisions.
Contract -correct answer- An agreement that is enforceable by
law is known as a/an
Competent Party -correct answer- Both parties be of legal age,
mentally competent to understand the contract, and not under
the influence of drugs or alcohol.
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The injured party has the right to rescind the contract whenever
there is... -correct answer- A violation of a material warranty,
intentional or unintentional concealment, or intentional or
fraudulent omissions.
Insurance policy is -correct answer- A written instrument in
which a contract of insurance is set forth.
Unilateral Contract -correct answer- Only one of the parties to
the contract is legally bound to do anything.
Concealment -correct answer- The withholding of information
that will result in an imprecise underwriting decision.
According to CIC 355, a representation may be... -correct
answer- Altered or withdrawn before the insurance is affected,
but not afterwards.
What is a definition of a unilateral contract? -correct answer-
One-sided: only one party makes an enforceable promise.
LIFE INSURANCE: CONTRACT LAW
QUESTIONS AND ANSWERS 2025
Contract law -correct answer- Law that refers to agreements
between individuals and entities that are binding
Tort Law -correct answer- Law that defines and enforces duties
and rights among private individuals that are not based on
contractual agreements
Concealment -correct answer- Occurs when a person withholds
a material fact that is crucial to making a decision. In insurance,
this involves withholding information that would be crucial to
underwriting decisions.
Contract -correct answer- An agreement that is enforceable by
law is known as a/an
Competent Party -correct answer- Both parties be of legal age,
mentally competent to understand the contract, and not under
the influence of drugs or alcohol.
, 2 | Page
The injured party has the right to rescind the contract whenever
there is... -correct answer- A violation of a material warranty,
intentional or unintentional concealment, or intentional or
fraudulent omissions.
Insurance policy is -correct answer- A written instrument in
which a contract of insurance is set forth.
Unilateral Contract -correct answer- Only one of the parties to
the contract is legally bound to do anything.
Concealment -correct answer- The withholding of information
that will result in an imprecise underwriting decision.
According to CIC 355, a representation may be... -correct
answer- Altered or withdrawn before the insurance is affected,
but not afterwards.
What is a definition of a unilateral contract? -correct answer-
One-sided: only one party makes an enforceable promise.
