LOMA 281 Module 1 Lesson 3 questions and answers, Exams of Insurance Economics

Download LOMA 281 Module 1 Lesson 3 questions and answers and more Exams Insurance Economics in PDF only on Docsity! LOMA 281 Module 1 Lesson 3 questions and answers Insurance policy - ANSWER: ✔✔A legally enforceable contract between a policyowner who applies for and owns the policy and the insurer that issues the policy Unilateral contract - ANSWER: ✔✔A contract in which only one of the parties makes a legally enforceable promise when entering into the contract. (life insurance) Bilateral contract - ANSWER: ✔✔A contract in which both parties make legally enforceable promises when they enter into the contract Commutative contract - ANSWER: ✔✔A contract under which the parties specify in advance the values that they will exchange; moreover, the parties generally exchange items or services that they think are of relatively equal value Aleatory contract - ANSWER: ✔✔A contract under which one party provides something of value to another party in exchange for a conditional promise. (life insurance) Bargaining contract - ANSWER: ✔✔A contract in which both parties, as equals, set the terms and conditions of the contract Contract of adhesion - ANSWER: ✔✔A contract that one party prepares and that the other party must accept or reject as a whole, generally without any bargaining between the parties to the agreement (life insurance) Informal contract - ANSWER: ✔✔A contract that is enforceable because the parties to the contract met requirements concerning the substance of the agreement rather than requirements concerning the form of the agreement (life insurance) Formal contract - ANSWER: ✔✔A contract that is enforceable because the parties met certain formalities concerning the form of the agreement.