Understanding Insurance Policies and Concepts
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Questions and Answers

Which characteristic of an insurance contract means that the contract is dependent on unknown future events?

  • Utmost Good Faith
  • Aleatory (correct)
  • Adhesion
  • Personal
  • What does the characteristic of 'unilateral' in an insurance contract indicate?

  • Both parties make a promise to pay
  • Only the insurer makes a promise to pay (correct)
  • Both parties dictate the terms
  • Only one party dictates the terms
  • Which characteristic of an insurance contract refers to the promise by the insured to be totally honest about a claim?

  • Aleatory
  • Personal
  • Utmost Good Faith (correct)
  • Adhesion
  • What does the characteristic of 'adhesion' in an insurance contract imply?

    <p>Only one party dictates the terms</p> Signup and view all the answers

    Which essential element of a legal contract involves mutual consent between the offeror and offeree?

    <p>'Agreement'</p> Signup and view all the answers

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