What rule is used to determine the importance of a representation quizlet?

What rule is used to determine the importance of a representation quizlet?

The materiality of concealment is used to determine the importance of a representation.

What type of concealment entitles an injured party to rescission of a contract?

Insurance Code section 331 states: “Concealment, whether intentional or unintentional, entitles the injured party to rescind insurance.” Insurance Code section 359 similarly provides: “If a representation is false in a material point, whether affirmative or promissory, the injured party is entitled to rescind the …

What is the difference between a representation and concealment?

A concealment is a negative act, meaning it is the failure to do something which is required while representation is positive act as the insured volunteers such facts. Concealment usually occurs prior to making of the insurance contract, while a representation may be made at the time of the issuance of the contract.

Which of the following becomes part of the contract is guaranteed to be true and if untrue may be grounds for rescinding the policy?

Which of the following becomes part of the contract, is guaranteed to be true, and if untrue, may be grounds for rescinding the policy? Warranties are statements guaranteed to be true in all respects. and made part of the policy.

Who can modify a policy of adhesion?

A policy of adhesion can only be modified by whom? The insurance company. A policy of adhesion is best described as a policy which only the insurance company can modify.

Which of the following is an example of legal consideration?

Which of the following is an example of legal consideration? Consideration can be defined as something of value given in exchange for the promises sought. In an insurance contract, consideration is given by the applicant in the form of paying premiums in exchange for the insurer’s promise to pay benefits.

What is a statement that is guaranteed to be true and if untrue may breach an insurance contract?

What is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? Warranty. A warranty in insurance is a statement guaranteed to be true. When an applicant is applying for an insurance contract, the statements he or she makes are generally not warranties but representations.

Who can perform a pretext interview?

No insurance institution, agent or insurance-support organization shall use or authorize the use of pretext interviews to obtain information in connection with an insurance transaction; provided, however, that a pretext interview may be undertaken to obtain information from a person or institution that does not have a …

How is concealment distinct from misrepresentation?

Concealment technically consists of neglecting to provide information that, if presented, would change the terms of the policy. Misrepresentation involves actively providing incorrect information to an insurance agent when purchasing a policy.

What is legal concealment?

The act of intentionally not revealing information that should be disclosed and would otherwise affect the terms or creation of a contract. A concealment can occur through either purposeful misrepresentation or withholding of material facts.

Which is an example of an unfair claims settlement practice?

Typical Example of Unfair Claims Practice The insurance company delays payment, rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoiding making a payment. For example, the claims representative keeps “forgetting” to send the claim forms.

Is the contract of adhesion valid?

A contract of adhesion, wherein one party imposes a ready-made form of contract on the other, is not strictly against the law. A contract of adhesion is as binding as ordinary contracts, the reason being that the party who adheres to the contract is free to reject it entirely.

Can a representation be withdrawn after an insurance policy goes into effect?

As representations induce the insurer in assuming the risk insured against and in issuing the insurance policy, it is but logical that representations may not be altered or withdrawn after the insurance is affected. Section 42 . A representation must be presumed to refer to the date on which the contract goes into effect.

Can a lawyer withdraw from a representation agreement?

Even if the client is behind in his or her payments, and even if a motion to withdraw is pending, the attorney must continue diligently representing them until they have been allowed to withdraw. Additionally, it is not permissible to include in a representation agreement that work will cease if timely payments are not made.

When to use representation and misrepresentation in insurance?

Representation and Misrepresentation in Insurance. Section 36. A representation may be oral or written. A representation is a factual statement made by the insured at the time of, or prior to, the issuance of the policy to give, information to the insurer and otherwise induce him to enter into the insurance contract.

Can a judge refuse to allow an attorney to withdraw?

Somewhat counterintuitively, even the “must” withdraw requirements are subject to exceptions. For example, even if the client fires the attorney, the judge may not sustain the attorney’s motion to withdraw even in this “mandatory” withdrawal situation.