What makes an insurance policy a unilateral contract?

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What makes an insurance policy a unilateral contract?

A) Only the insured pays the premium
B) Only the insured can change the provisions
C) Only the insurer is legally bound
D) Only the insured is legally bound

Answer: C) Only the insurer is legally bound

Legal Concepts

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

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The voluntary relinquishment of a legal right is called
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The authority granted to a licensed producer is provided via the
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