Joe Has a Dispute with His Insurance Company Regarding How

question 10

Multiple Choice

Joe has a dispute with his insurance company regarding how much he is entitled to recover on a claim. Joe believes he is entitled to get $8,000 based upon his interpretation of the policy wording. The insurer says the claim is not covered by the policy. Joe sues and a court of law decides that the policy wording is vague and ambiguous,and rules that the loss IS covered. What legal characteristic of insurance resulted in the court's decision?

• A)insurance is aleatory
• B)insurance is a contract of indemnity
• C)insurance is a contract of adhesion
• D)insurance is personal

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Definitions:

Coccyx

The small, triangular bone at the base of the spinal column, often called the tailbone.

Sacrum

A large, triangular bone at the base of the spine, below the lumbar vertebrae and above the coccyx, forming part of the pelvis.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, often measured for diagnostic purposes.

Stress

A physical or psychological response to internal or external pressures, often resulting in physical, mental, or emotional strain or tension.