Insurance transaction includes: Answer By mail or other means:

- Solicitation

- Negotiation

- Sale

- Advising an individual about coverage

Elements of a legal contract Answer-Agreement (offer and acceptance)

-Consideration

- Competent parties

- Legal purpose

-Negotiation does NOT need to happen

Who make the offer in an insurance application Answer Applicant

When does acceptance take place Answer An insurers underwriter approves the application and issues a policy

The binding force in any contract - Answer - Consideration

- insurer promises to pay in the event of a loss

Contract of adhesion - Answer-Prepared by the insurer and accepted or rejected by the insured -""Take it or leave it" basis

Insurance contracts are - Answer - Aleatory

- exchange of unequal amounts of values

Unilateral contract Answer-only one of the parties is legally bound -"one-way contract"

"When does an insurance policy go into effect" - Answer - When the insured receives it