A conditional insurance contract is best described by which of the following? A contract that requires the insured person to fulfill specific conditions or perform particular actions. This implies that the insurer’s pledge to pay benefits is contingent on the occurrence of a contract-covered event.
What is a conditional insurance contract?
An insurance contract in which the insurer’s commitment is conditional on (depending on) the occurrence or completion of certain events.
Which of the following best describes a conditional contract quizlet?
This set of terms includes (64) A Conditional Contract is best described by which of the following? A conditional contract is one in which both parties must fulfill specified obligations in order for the contract to be enforceable.
Why are insurance policies considered conditional contracts quizlet?
stipulative (An insurance contract is conditional in that certain conditions must be met before the contract can be legally enforced.) Authorization (In the licensee’s contract, authority refers to the activities and deeds that an agent is authorized to perform on behalf of an insurance company.)
Which of the following correctly describes a contract of indemnity?
Which of the following statements accurately characterizes an indemnity contract? Rather than being negotiated between the contractual parties, an insurance contract is produced by one party, the insurer.
What is bilateral insurance?
A bilateral contract is an agreement between two or more parties that binds them all to mutual duties. Because only the insurer makes a legally binding pledge to the insured, most insurance contracts are unilateral rather than bilateral.
What are bilateral contracts?
A bilateral contract is a legally binding agreement between two parties in which both sides agree to perform and fulfill one side of a deal. This contract form is one of the most popular binding agreements since it renders both parties into “obligors” people or parties who are legally obligated to one another.
The phrase “bilateral contract” is sometimes interchanged with “sales contract” because it is so widely used. If an obligor fails to fulfill their obligations under a bilateral contract, they are said to have violated the contract (and of course, vice versa).
What makes an insurance policy unilateral contract?
A unilateral contract is one in which only one party makes a legally binding guarantee. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. The insured, on the other hand, makes few, if any, legally binding promises to the insurer.
Which of the following is example of insured consideration?
A paid premium is an example of the insured’s attention. Insurance contracts are unilateral, which means that only the insurer makes legally binding guarantees. A(n) concealment is the deliberate hiding of material facts that might impact the validity of an insurance policy.
What makes an insurance policy a unilateral contract quizlet?
What makes an insurance policy a one-sided agreement? The insurer is the only one who is legally obligated. A contract in which the insurer agrees to pay the same amount as the loss.
Which of the following is a characteristic of an insurance contract?
- Voluntary – it is not required, and the parties may include any terms and conditions they think appropriate, as long as they do not violate the law or public policy.
- Conditional – subject to certain circumstances, the most important of which being the occurrence of the insured event.
- Personal each contracting party considers the other’s character, credit, and behavior.