General Insurance
Why is an insurance policy a contract of adhesion?
Answer and explanation
Answer: D. A contract of adhesion is drafted by one party and offered without negotiation, which is why ambiguity is generally construed against the drafter. Dependence on an uncertain event describes an aleatory contract, and a single enforceable promise describes a unilateral one.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, contract of adhesion
More general insurance questions
- When a policyowner stops paying premiums, allowing a term life policy to lapse, the insurer cannot take legal action to force the owner to continue making payments. Which characteristic of insurance contracts does this limitation reflect?
- Which characteristic must a loss have to be an insurable risk?
- Which characteristic would ordinarily prevent a risk from being insurable?
- 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?
621 New York questions like this one.
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