General Insurance PrinciplesQuestion 186 of 315
Which characteristic of an insurance contract means that only the insurer makes a legally enforceable promise?
a.Aleatory
b.Unilateral
c.Conditional
d.Bilateral
Explanation
An insurance contract is unilateral because only the insurer makes a legally enforceable promise. The insured is not required to pay future premiums but loses coverage if they stop. Insurance contracts are NOT bilateral.
Practice all 315 questions free — no signup required.
Related questions on this topic
- Adverse selection is BEST described as:
- All of the following are required elements of a valid contract EXCEPT:
- What does the applicant offer as consideration when applying for a life insurance policy?
- An insurance contract is described as aleatory because:
- Because an insurance policy is a contract of adhesion, California courts will interpret any ambiguity in the policy:
- Under California Insurance Code §330, neglect to communicate that which a party knows and ought to communicate is called:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Life & Health Insurance License Exam · How we review