Property & Casualty Unit 2 Quiz

An insurance contract is prepared by one
party (the insurance company) with little or no
opportunity for the other party (the insured) to
bargain. This characteristic is called

In insurance, an insured may pay premiums for
many years without having a loss, or an insured
may suffer a loss and get a larger amount of
money from the insurance company than he has
paid in premiums. For this reason, an insurance
contract is

In an insurance contract, the consideration that
the insured gives is called

Which of the following individuals would be
considered a competent party in an insurance
contract?

An agreement between two parties is also called

Anthony intentionally lied on his insurance
application to obtain coverage. This is an
example of

The failure to disclose known facts is

A statement that is guaranteed to be true is

Allison’s auto insurance policy is due on the
10th of each month. Ever since she has had the
policy, she has sent the premium in on the 16th
of the month. The insurer has been accepting
the premium this way for the past 5 years. A
new CEO takes over and decides to cancel
Allison’s policy for a nonpayment of premium.
Allison contests this decision and legally gets
the policy reinstated. The decision to reinstate
the policy is an example of

Misrepresentations do not necessarily void
insurance contracts. To do so, they must be