Principios Generales de SegurosPregunta 365 de 716
The principle of indemnity, which limits recovery to the actual amount of a loss, generally does NOT apply to life insurance because a life policy is:
a.A contract of adhesion, written by the insurer on a take-it-or-leave-it basis
b.A unilateral contract
c.A conditional contract
d.A valued contract that pays a stated face amount
Explicación
Life insurance is a valued contract: it pays a predetermined face amount agreed upon at issue rather than reimbursing a measured loss, so the indemnity concept does not fit because a human life has no objective dollar value. Being a contract of adhesion, unilateral, or conditional are all true characteristics of a life policy, but none of them is the reason indemnity does not apply. Property insurance, by contrast, is an indemnity contract that reimburses actual loss.
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Preguntas relacionadas de este tema
- Persuading a policyowner to drop an existing policy and replace it by using misleading or incomplete comparisons is the unfair trade practice known as:
- Offering a prospective buyer part of the commission or another inducement not specified in the policy in order to make a sale is called:
- A producer who collects and holds premium money on behalf of the insurer occupies a position described as:
- A stranger-originated life insurance (STOLI) arrangement is prohibited primarily because:
- Which relationship most clearly satisfies insurable interest for a life insurance policy?
- Insurers combat adverse selection primarily through:
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)