1. A contract is an agreement between two or more people, which creates an obligation to do or not to do a particular thing. What are the five elements, which must be present, in order for the contract to be enforceable at law?

a. Accord, Contemplation, Legitimacy of Object, Lawful Capacity of Parties to Contract, Genuine Intent
b. Agreement, Care, Legality of Occurrence, Legal Capability of Parties to Contract, Genuine Intention
c. Accord, Consideration, Legality of Object, Official Capacity of Parties to Contract, Valid Intention
d. Agreement, Consideration, Legality of Object, Legal Capacity of Parties to Contract, Genuine Intention

2. Why is insurance thought to be fiduciary in nature?

a. Insurance brokers must make judgments and negotiate claims therefore insurance is thought to be fiduciary in nature.
b. Insurance brokers must understand the various types of insurance available; therefore insurance is thought to be fiduciary in nature.
c. Insurance brokers handle the affairs and funds of others; therefore insurance is thought to be fiduciary in nature.
d. Insurance brokers be able to explain any exclusions, therefore insurance is thought to be fiduciary in nature.

3. While the majority of contracts require the presence of the five elements to be enforceable, insurance contracts require an additional three elements. What are these three elements?

a. Insurable advantage, utmost thought, and protection
b. Insurable interest, Utmost good faith, and Indemnity
c. Guarantee, Consideration, and Indemnity
d. Adequate coverage, Intent, and Risk