Chapter 3 -- Contract Law and the Insurance Industry Tools A B application The form on which the prospective insured states or declares facts the insurance company requests. representation A written or an oral statement the applicant makes that is true to the best of his/her knowledge Concealment When an applicant for insurance hides a fact from the insurer. fraud When an applicant intentionally misrepresents the facts on an application. misrepresentation The facts stated on an application do not accurately reflect the true situation. Waiver Insurer gives up a right possessed. estoppel Legal doctrine that prevents the denial of a fact previously admitted through action or conduct. declaration page Contains the statements the insured made on the application; info about the risk; insured's name, effective date of cveerage, deductible, premium. insuring agreement Contains the insurance company's promise to pay for loss. (Indicates what coverages the contract offers) conditions Spell out, in detail,both the insurer's and insured's rights and duties exclusions A policy provision that eliminates coverage under certain situations. definitions A term that has been given a specific meaning within an insurance policy. endorsements A document attached to a policy that modifies the terms and conditions. binders Temporary evidence of insurance policy issuance indemnity The payment of an amount of money to offset all or part of an insured loss. aleatory contract The outcome ofthe contract is affected by chance and that the consideration given up is unequal.