Which of the following is NOT consideration on the part of an insured? Objectionable provision on policy but not allowed to negotiate .
Which of the following is consideration on the part of the insurer?
Consideration on the part of the insured is the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the event of loss .
Which of the following is NOT consideration on the part of an insured?
Which of the following is NOT consideration on the part of an insured? Objectionable provision on policy but not allowed to negotiate .
Which of the following is an example of the insured consideration?
An example of the insured's consideration is a paid premium . ... Insurance contracts are unilateral, meaning that only the insurer makes legally enforceable promises in the contract. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) concealment.
Which of the following would not be considered an insured under a homeowners policy?
Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered.
What are the 5 parts of an insurance policy?
Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions . Many policies contain a sixth part: endorsements. Use these sections as guideposts in reviewing the policies. Examine each part to identify its key provisions and requirements.
What are the 4 elements of an insurance contract?
In general, an insurance contract must meet four conditions in order to be legally valid: it must be for a legal purpose; the parties must have a legal capacity to contract; there must be evidence of a meeting of minds between the insurer and the insured; and there must be a payment or consideration.
What is a material misrepresentation?
In an insurance contract, a material misrepresentation occurs when the insured makes an untrue statement that: 1) is material to the acceptance of the risk; and 2) would have changed the rate at which insurance would have been provided or would have changed the insurer's decision to issue the contract.
What is a pro rata other insurance clause?
There are three primary forms of other insurance clauses: “Pro rata clauses provide that multiple policies contribute to a loss on a shared basis, such as by limits of the respective policies or by equal shares ; excess clauses render a policy excess to other insurance; and escape clauses render a policy inapplicable if ...
What is a foreign insurer?
Foreign Insurer — from the U.S. perspective, an insurer domiciled in the United States but outside the state in which the insurance is to be written . In effect, it is a domestic insurer doing business outside of the state in which it is domiciled.
What is the applicant offering as consideration?
Consideration can be defined as the value given in exchange for the promises sought . In an insurance contract, consideration is given by the applicant in exchange for the insurer's promise to pay benefits. It also consists of the application and the initial premium.
A waiver of premium rider is an optional insurance policy clause that waives insurance premium payments if the policyholder becomes critically ill or disabled . To purchase a waiver of premium rider you may need to meet certain requirements for age and health.
What is an ambiguous insurance policy?
Insurance policies are often drafted by one party, the insurance firm, the insured has no input in setting the terms of an insurance policy or contract. Therefore, if the terms of the policy are ambiguous, the meaning which favors the insured overhauls other meanings that the contract might have .
What is loss of use coverage?
Loss of use coverage, also known as additional living expenses (ALE) insurance, or Coverage D, can help pay for the additional costs you might incur for reasonable housing and living expenses if a covered event makes your house temporarily uninhabitable while it's being repaired or rebuilt.
Which of the following would not be classified as personal property for insurance purposes?
Which of the following would NOT be classified as personal property for insurance purposes? A house . The purpose of a stated value contract is: ... The value of the insured items is determined at the time the policy is written, not at the time of the loss.
What are the six categories typically covered by homeowners insurance?
- Property Damage. This covers damage to your home , such as from fire, wind, or hail. ...
- Additional Living Expenses. ...
- Personal Liability. ...
- Medical Payment Coverage.
