Chapter 3

2. An obligation to act in complete honesty and to disclose all relevant facts.
6. Any contract in which one party must either accept the agreement as written by the other party or reject it.
7. A contract that one or more parties must perform only under certain conditions.
9. A letter that specifies coverage issues and informs the insured that the insurer may deny coverage.
10. The intentional relinquishment of a known right.
13. A period during which an insurer can challenge the validity of a life insurance policy.
14. A false statement of a material fact on which a party relies.
15. A policy in which the insurer pays a stated amount in the event of a specified loss.

1. A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of loss.
3. An agreement indicating that during the course of investigation, neither the insurer nor the insured waivers rights under the policy.
4. A Clause that states that the insurer cannot contest the policy after it has been in force for a specific period, such as two years, during the insured's lifetime.
5. The voluntary act of choosing between two alternative rights or privileges.
8. A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued.
11. A legal principle that prohibits a party from asserting a claim or right.
12. The principle that insurance policies should provide a benefit no greater than the loss suffered by an insured.