A contract in which the values exchanged are not equal because chance is involved is called a(n)

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A contract in which the values exchanged are not equal because chance is involved is called a(n)

A) contract of adhesion.
B) unilateral contract.
C) conditional contract.
D) aleatory contract.

Answer: D) aleatory contract.

Insurance

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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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All of the following are general requirements of a qualified plan EXCEPT
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A domestic insurer issuing variable contracts must establish one or more
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Which of the following best defines target premium in a universal life policy?
What does the word "level" in Level Term describe?
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The pro rata liability clause is designed to protect the principle of
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Life insurance policies will normally pay for losses arising from
Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE
Ambiguities in an insurance policy are always resolved in favor of the
In an insurance contract, the applicant's "consideration" is the
Agents may be found guilty of defamation if they make a false statement that is intended to?
How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
What documentation grants express authority to an agent?
An error was made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply?
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What is the benefit of choosing extended term as a nonforfeiture option?
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All of the following are true regarding rebates EXCEPT
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What documentation grants express authority to an agent?

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