What Is the Consequence of Purchasing Insurance in a Situation

question 110

Multiple Choice

What is the consequence of purchasing insurance in a situation where one does not have an insurable interest?

• A) This will be considered a violation of state blue laws, making the contract unenforceable.
• B) Due to the freedom to contract, the contract will be enforceable in the absence of fraud or other wrongdoing.
• C) The insurance contract will be considered an illegal gambling contract.
• D) The policy holder will have a reasonable period of time to obtain an insurable interest.
• E) There is no consequence, and the policy will be enforced.

Understand the concept of unilateral and bilateral contracts, how they are formed, and the obligations they create.

Identify and understand contract terms related to modifications and the interpretation of ambiguous contract provisions.

Recognize how contract law varies internationally, with specific references to general and special provisions in contracts.

Understand the conditions under which a non-party to a contract may be held responsible for payment under theories such as quasi-contract.

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Definitions:

Basal Metabolic Rate

The number of calories required to keep your body functioning at rest, representing the minimum amount of energy needed for vital organs to operate.

Serving Size

The standardized amount of food typically consumed in one sitting, used for nutritional labeling and dietary guidelines.

Set Points

The theory that each individual has a genetically determined range of weight and temperature that their body will try to maintain to stay at optimal health.

Natural Behavior Tendencies

Innate or biologically driven behaviors that occur naturally in an organism without the need for learning.