Why can an insurer refuse to pay a claim if an insured fails to abide by the policy provisions?

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Why can an insurer refuse to pay a claim if an insured fails to abide by the policy provisions?

A) because insurance contracts are aleatory
B) because insurance contracts are unilateral
C) because insurance contracts are conditional
D) because insurance contracts are contracts of adhesion

Answer: C) because insurance contracts are conditional

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?

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The voluntary relinquishment of a legal right is called
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