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AIC 301 Actual Exam Newest 2025 Complete 200 Questions And Correct Detailed Answers (verified Answers) ||Already Graded A+||Brand New Version!!
A clause that states that the insurer cannot contest the policy after it has been in force for a specified period, such as two years, during the insured's lifetime. - ANSWER-Incontestable clause
A period during which an insurer can challenge the validity of a life insurance policy. - ANSWER-Contestable period
Any contract in which one party is put in a "take-it-or-leave-it" position and must either accept the contract as written by the other party or reject the contract entirely. - ANSWER-Contract of adhesion
A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of the loss.
- ANSWER-Contract of indemnity
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The principle that insurance policies should provide a benefit no greater than the loss suffered by an insured. - ANSWER- Principle of indemnity
A policy in which the insurer pays a stated amount in the event of a specified loss (usually a total loss), regardless of the actual value of the loss. - ANSWER-Valued policy
A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued. - ANSWER- Binder
A law that permits a negligence victim to sue an insurer directly or to sue both the insurer and wrongdoer jointly. - ANSWER- Direct-action statute
The intentional relinquishment of a known right. - ANSWER- Waiver
Something of value or bargained for and exchanged by the parties to a contract. - ANSWER-Consideration
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The voluntary act of choosing between two alternative rights or privileges. - ANSWER-Election
An insurer's letter that specifies coverage issues and informs the insured that the insurer is handling a claim with the understanding that the insurer may later deny coverage should the facts warrant it. - ANSWER-Reservation of rights letter
A signed agreement indicating that during the course of investigation, neither the insurer nor the insured waives rights under the policy. - ANSWER-Nonwaiver agreement
The legal ownership of property; the highest right to property that a person can acquire. - ANSWER-Title
The legal entitlement attached to the expressed form of an idea or of other intangible subject matter. - ANSWER-Intellectual property rights
The legal right granted by a government entity to a person or an organization for a period of years to exclusively own and control an original written document, piece of music, computer code, or other form of expression. - ANSWER-Copyright 3 / 4
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The right granted by a government entity to an inventor or applicant for a limited time period to exclusively own and control a new, useful, and nonobvious invention. - ANSWER- Patent
An increase or addition to property. - ANSWER-Accession
In property law, the intermingling of goods belonging to different owners. - ANSWER-Confusion
The voluntary and gratuitous transfer of property without consideration. - ANSWER-Gift
The owner of the personal property in a bailment. - ANSWER- Bailor
The party temporarily possessing the personal property in a bailment. - ANSWER-Bailee
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