Which statement is CORRECT when describing a contract of adhesion?

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Which statement is CORRECT when describing a contract of adhesion?

A) Contract may be accepted or rejected by the insured
B) Contract involves negotiation between insurer and insured
C) Any confusing language in the contract would be interpreted in favor of the insurer
D) Contract cannot be modified by the insurer

Answer: A) Contract may be accepted or rejected by the insured

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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?

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