Why Are Insurance Contracts Said to Be Contracts of Adhesion

question 8

Multiple Choice

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.

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Definitions:

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Productivity

The efficiency with which input resources are converted into outputs, often measured as output per hour worked.