General Insurance
Which four elements must be present for an insurance contract to be legally enforceable?
Answer and explanation
Answer: B. Every contract requires offer and acceptance, consideration, parties with legal capacity, and a lawful object. Warranties, underwriting steps and medical evidence are features of insurance practice rather than elements of contract formation.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, elements of a legal contract
More general insurance questions
- Under the law of large numbers, what happens to the reliability of an insurer's loss prediction as the number of similar exposure units grows?
- What characterises a career agency, or captive, distribution system?
- What consequence follows from an insurance policy being a contract of adhesion?
- What distinguishes a captive or career distribution system from an independent one?
- What distinguishes a fraternal benefit society from a commercial insurer?
- What do independent rating services report about an insurer?
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