Elements of a legal contract (use acronym)
CLOAC
Consideration
Legal Purpose
Offer
Acceptance
Competent Parties
What does the L stand for in CLOAC
Legal Purpose
What does the last C stand for in CLOAC
Competent Parties
In the insurance world, what does Aleatory mean?
Value received from the contract by each party is unequal
Term used when describing the process of restoring the insured to the financial state he or she enjoyed prior to the occurrence.
Indemnity: No more, no less
Believed to be true is know as what?
A representation
Promise or statement you know is true
Warranty
Information given that is not true but would not affect the insurance companies decision.
Misrepresentation
information given that is not true and DOES affect the insurers decision
Material Misrepresentation
Intentional act to cheat another.
Fraud
Term used for once a right has been waived, it cannot be reinserted and used against the insured.
Estoppel
What does the ‘O’ stand for in CLOAC
Offer
What is the term used when insured may pay premiums for years with out having a loss, or an insured may suffer a loss and get a large amount of money from the insurance company than he has paid in premiums.
Aleatory
Insurance contract: Consideration that the insured gives is called
premium Payment
Agreement between two parties is called Offer and ______?
Acceptance
