Florida Health 240 Insurance Exam (Graded A+)
Florida Health 240 Insurance Exam (Graded
A+)
Rules of Construction
Help to identify and establish the
... [Show More] intent of the parties to the contract
Utmost good faith
Each party is entitled to rely on the representation of the other, and each party
should have a reasonable expectation that the other is acting in good faith without
attempts to conceal or deceive.
Aleatory Contract
A contract under which one party's performance is contingent on an uncertain
event.
property and casualty agent
has the power to bind the insurer
Adhesion Contract
Insurance company drafts contract and the insured adheres to it. Any ambiguity
resolved in favor of the insured.
Unilateral contract
Insured has completed paying the premium, only one party of the contract is
legally required to do something. Insured promises to pay the death benefit in the
event of loss. Can not be held for breach of contract.
Conditional contract
This type of contract is conditional because the company only pays on condition of
a loss.
Personal Contract
The contract is between the insured and the insurer
warranty
guarantee; assurance by seller. Any breach provides grounds for voiding the
contract.
representation
a statement believed to be true to the best of one's knowledge.
false pretenses
When an uninsurable individual applying for insurance may ask another person to
substitute for him to take the physical examination.
Misrepresentation
A false statement or lie that can render the contract void.
concealment (n)
The failure to disclose material facts. Grounds for recission by either party.
Material Information or facts
Something crucial to acceptance of the risk.
fraud (n)
An intentional act designed to deceive and induce another party to part with
something of value.
Parol Evidence Rule
Rule of law disallowing oral evidence which disputes a written agreement.
Voidable Contract
A contract that may be legally avoided at the option of one or both of the parties.
Void Contract
an agreement of no legal effect.
Implied Authority
Authority that is given not in writing but that is necessary for the agent to transact
insurance.
Apparent Authority
A third party's reasonable belief that an agent has authority to act on the principal's
behalf.
Express Authority
the authority of an agent, stated in the document or agreement creating the agency.
Lingering implied authority
means that the agent carries "signs or evidences of authority.
Estoppel
A legal impediment to denying a fact or restoring a right that has been previously
waived.
Valid Contract (Legal Contract)
one that meets all of the requirements of a binding contract. Competent parties,
legal purpose, and consideration, not an actual written document.
Policyfolder
Important documents with a custom folder.
Plan Sponsors
Policyholder responsible for administering pan and making premiums to insurance
company.
Employee or individual employer group
Employer is the policy-owner and establishes eligible class of employees to be
covered under group policy.
Multiple employer group
Several employers forming a trust to combine their workers for life insurance
eligibility.
Multiple Employer Trust (MET)
A legal entity of small business owners grouped together to buy life insurance.
Taft-Hartley Act
a law that restricted the power of labor union [Show Less]