Question 1 (3 points) Match the Key Term with the proper definition. 1. Principle of indemnity A principle that states a higher degree of honesty is imposed on both parties to a insurance contract than is imposed on parties to other contracts. 2. Principle of insurable interest 3. Principle of reasonable expectations The first requirement of a binding insurance contract. 4. Principle of utmost good faith 5. Legally competent A principle that states that the insured must be in a position to lose financially if a loss occurs 6. Offer and acceptance Legal doctrine that prevents a person from denying the truth of a previous representation of fact, especially when such representation has been relied on by the one to whom the statement was made. 1. Binder 2. Conditions 3. Material (fact) 4. Representations Deliberate failure of an applicant for insurance to reveal a material fact to the insurer. 5. Estoppel 6. Concealment Statements made by an applicant for insurance such as the applicant's occupation, state of health, and family history