Because insurance contracts impose an obligation of complete honesty on the parties, an insurance contract is called a

Because insurance contracts impose an obligation of complete honesty on the parties, an insurance contract is called a



A. Contract of indemnity.
B. Contract of adhesion.
C. Conditional contract.
D. Contract of utmost good faith.


Answer: D. Insurance contacts are considered contracts of utmost good faith because both parties are obligated to be completely honest with each other.

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