LOMA 311 Exam Review: Key Concepts and Definitions, Exams of Law

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LOMA 311 EXAM REVIEW

Legislative - Answer Which American branch of government is equal to Parliament?

State Court System - Answer Trial courts, appellate courts, and the Supreme Court

Federal Court System - ANSWER District Court, Circuit Courts of Appeals, and Supreme Court

Affirmative Defense is an assertion of facts that constitute a defense to the plaintiff's claim.

Interrogatories - Answer Written questions that one party prepares and that the other side must respond in writing within a certain time

the preponderance of the evidence - ANSWER Means that the conclusion on an issue of fact must be supported by the greater weight of the evidence (in civil cases).

Proof Beyond Reasonable Doubt - Answer Higher degree of proof, typically reserved for criminal situations.

Conversion: ANSWER Unauthorized dominion and control over another's property

Compensatory damages are aimed to reimburse an injured party for the amount of monetary losses caused by the defendant's behavior.

Benefit of the bargain - ANSWER Compensatory damages awarded in a breach of contract action.

Punitive Damages: ANSWER Damages awarded in addition to compensatory damages when the defendant's behavior was malicious or intentional.

Nominal Damages: ANSWER Damages granted where the plaintiff is wronged but does not incur a loss, cannot prove the amount of the loss with reasonable certainty, or the damage is insignificant. Not eligible for compensatory damages.

A corporation limited by shares is one whose owner's liability is limited to the investment they made when purchasing the company's shares.

Company Limited by Guarantee - ANSWER A company whose owners promise to pay up to a specified sum if the company is liquidated.

Federal Trade Commission Act - ANSWER Antitrust law established the Federal Trade Commission (FTC) and granted it the authority to enforce federal antitrust statutes.

Price Fixing - Answer An antitrust violation occurs when competitors cooperate together to influence the pricing of a product or service.

Unfair price discrimination: ANSWER An antitrust violation arises when a seller promises to sell products to a buyer at a lower price than the price charged to other buyers under the same conditions.

Tying Arrangements - Answer An antitrust breach was an illegal arrangement under which a business sells one product to a purchaser only if the purchaser also buys a separate product from the firm.

Quitclaim Deed - ANSWER conveys whatever ownership rights the grantor possessed in the property at the time the deed was completed.

Warranty Deed: ANSWER Conveys clear title to the property and includes guarantees that the donor has clear title to it.

Bearer Paper - Answer Negotiable without the need for signatures from specific payees. This also applies to checks payable to the order of cash.

Order Paper - ANSWER can be negotiated if it is endorsed, that is, signed on the back of the paper by the stated payee and transferred to another person.

Condition Precedent - Answer Condition that must exist in order to give birth to one party's obligation to deliver a promise

Condition Subsequent - Answer Condition that, if it occurs, cancels one party's obligation to keep a promise.

Conditional premium receipt provides temporary insurance coverage only when certain requirements are met.

Insurance premium receipt - ANSWER Provides temporary insurance if the insurer determines the proposed insured to be insurable as a standard or preferred risk.

Approval Premium Receipt - ANSWER Provides temporary insurance only when the insurer classifies the PI as a standard or better-than-average risk. Subject to the condition previous.

Binding Premium Receipt - Answer Provides temporary insurance that is effective on the date mentioned on the receipt. Binding without specified requirements being met. Subject to a following condition. Insurers can terminate temporary insurance for a variety of reasons.

Rebating: ANSWER A sales tactic in which a producer offers a prospect an inducement to acquire a policy from the producer, and the inducement is not offered to other applicants in comparable conditions.

Per Capita - Answer Class designation in which all class members have the same relationship to the policyowner, and the class members who survive share the proceeds equally. No offspring or heirs of dead class members participate in the distribution.

Stirpes - ANSWER Class designation in which the descendants of a deceased class member receive a share of the policy proceeds through representation. Divides the income across family branches.

Contingent Payee - Answer Will receive any proceeds that remain receivable at the time of the payee's death. If the contingent beneficiary dies before the proceeds are fully paid out, the contingent payee receives the benefits.

Clear and Convincing Evidence - Answer If pursuing a reformation, you must have the following: