General Insurance PrinciplesCâu 173 / 474
An insurance policy is classified as a unilateral contract because:
a.only the insured is bound, and must keep paying premium each term
b.only the insurer gives a legally enforceable promise of performance
c.one signature, the applicant's, is needed to put the policy in force
d.the insurer may change the wording at any time during the term
Giải thích
Once the premium is paid the insurer alone has made an enforceable promise, the promise to pay covered losses. The insured cannot be sued for refusing to pay the next premium; coverage simply ends, which is why the answer saying only the insured is bound is backwards. Unilateral describes whose promise can be enforced, not how many signatures the paperwork carries.
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Câu hỏi liên quan cùng chủ đề
- Which characteristic makes a risk suitable for coverage by a private insurer?
- Describing an insurance policy as a contract of adhesion means that:
- An insured pays $1,400 of premium and later collects $90,000 after a fire. This unequal exchange of value shows that the policy is:
- After a kitchen fire the insured refuses to submit a proof of loss or let the adjuster inspect the damage. The insurer may resist paying because the policy is:
- An insured sells her house and tries to hand her homeowners policy to the buyer. Under the personal-contract rule:
- The doctrine of utmost good faith in insurance contracting means that:
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