Matching Pairs Risk Chp. 9 pt 2Online version Risk Chp. 9 pt 2 by Ryan Brown 1 Aleatory Contract 2 Conditional Premium Receipt 3 Representations 4 Legal Purpose 5 Subrogation 6 Conditions 7 Principle of Utmost Good Faith 8 Valued Policy 9 Contract of Adhesion 10 Implied Authority Innocent the insured must accept the entire contract, with all of its terms and conditions; if there is ambiguity in the contract it is constructed against the insurer. a principle that states a higher degree of honesty is imposed on both parties to an insurance contract than is imposed on parties to other contracts. policy that pays the face amount of insurance, regardless of actual cash value, if a total loss occurs. provisions inserted in an insurance contract that qualify or place limitations on the insurer's promise to perform. one in which the values exchanged may not be equal but depend on an uncertain event. an insurance contract must be for a legal purpose; an insurance policy that promotes something illegal is contrary to the public interest and cannot be enforced. which refers to the authority of the agent to perform all incidental acts necessary to fulfill the purpose of the agency agreement. substitution of the insurer in place of insured for the purpose of claiming indemnity payments from a negligent third party for a loss covered by insurance. The insurer is entitled to recover from a negligent third party any loss payments made to the insured. a receipt given to the applicant for life insurance; if the applicant is found insurable according to the insurers underwriting standards, the life insurance becomes effective as of the date of application, or in some premium receipts, the date of application or the date of the medical exam, whichever is alter. statements made by an applicant for insurance (for example, in life insurance) such as the applicant's occupation, state of health, and family history.
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