General Insurance
What consequence follows from an insurance policy being a contract of adhesion?
Answer and explanation
Answer: D. One party writes the contract and the other takes it or leaves it, so doubtful language is read in favour of the insured. Neither party may rewrite the terms unilaterally once the contract is made.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, contract of adhesion
More general insurance questions
- Which feature identifies a fraternal benefit society?
- Which four elements must be present for an insurance contract to be legally enforceable?
- Which method of handling risk does buying life insurance represent?
- Which need is customarily met by a government insurer rather than a private one?
- Which policy feature is designed chiefly to limit adverse selection?
- Which set names the elements of a legal contract as the outline lists them?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.