Author Question: What is the practical effect of an insurance policy being a conditional contract? A) The insurer ... (Read 18 times)

maychende · **on:** Jul 11, 2018

What is the practical effect of an insurance policy being a conditional contract?

A) The insurer can refuse to a pay claim if the insured has not complied with all policy provisions.
B) The insured can assign the policy only with the insurer's consent.
C) The insurer can sue the insured for failure to pay any premiums.
D) The insured gets the benefit of the doubt if a policy contains any ambiguities or uncertainties.

Question 2

Why are insurance contracts said to be contracts of adhesion?

A) The values exchanged by the parties to the contract are not equal.
B) One party writes the contract, and the other party must accept the entire contract as written.
C) Only one party makes a legally enforceable promise.
D) Conditions are placed on the insurer's promise to perform.