XCEL CHAPTER 3 EXAM QUESTIONS WITH COMPLETE
SOLUTIONS VERIFIED
Which contract element is insurable interest a component of?
A. Competent parties
B. Offer and acceptance
C. Consideration
D. Legal purpose
Legal purpose
In an insurance contract, the element that shows each party is giving something
of value is called?
A. offer
B. acceptance
C. consideration
D. purpose
Consideration
What makes an insurance policy a unilateral contract?
A. Only the insured pays the premium
B. Only the insured can change the provisions
C. Only the insurer is legally bound
D. Only the insured is legally bound
Only the insurer is legally bound
, The authority granted to a licensed producer is provided via the?
A. producer's apparent authority
B. written contract
C. Law of Agency
D. Principal Capacity
Law of Agency
Legal purpose is a term used in contract law meaning?
A. there must be an offer and acceptance
B. the contract must be aleatory
C. there must be legal reasons for entering into the contract
D. the contract must be a contract of adhesion
There must be legal reasons for entering into the contract
All of the following are elements of an insurance policy EXCEPT?
A. definitions
B. other insurance
C. claim forms
D. conditions
claim forms
According to life insurance contract law, insurable interest exists?
A. when any business relationship exists
B. at the time of application
C. at the time of death
D. only when determined by a judge
SOLUTIONS VERIFIED
Which contract element is insurable interest a component of?
A. Competent parties
B. Offer and acceptance
C. Consideration
D. Legal purpose
Legal purpose
In an insurance contract, the element that shows each party is giving something
of value is called?
A. offer
B. acceptance
C. consideration
D. purpose
Consideration
What makes an insurance policy a unilateral contract?
A. Only the insured pays the premium
B. Only the insured can change the provisions
C. Only the insurer is legally bound
D. Only the insured is legally bound
Only the insurer is legally bound
, The authority granted to a licensed producer is provided via the?
A. producer's apparent authority
B. written contract
C. Law of Agency
D. Principal Capacity
Law of Agency
Legal purpose is a term used in contract law meaning?
A. there must be an offer and acceptance
B. the contract must be aleatory
C. there must be legal reasons for entering into the contract
D. the contract must be a contract of adhesion
There must be legal reasons for entering into the contract
All of the following are elements of an insurance policy EXCEPT?
A. definitions
B. other insurance
C. claim forms
D. conditions
claim forms
According to life insurance contract law, insurable interest exists?
A. when any business relationship exists
B. at the time of application
C. at the time of death
D. only when determined by a judge
