Ellen,who Has a Safe Driving Record,purchases Automobile Insurance from an Insurance

question 24

Multiple Choice

Ellen,who has a safe driving record,purchases automobile insurance from an insurance company.Which of the following is the accurate reason why Ellen would be disallowed from assigning her rights to be insured to another driver?

• A) The assignment would materially alter the risk and duties of the insurance company.
• B) Claiming insurance is a future right and hence cannot be assigned.
• C) Insurance is a personal service contract and hence cannot be assigned.
• D) Personal contracts like insurance are assignable only with the agreement of all parties involved in the contract.

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Definitions:

Signal-Detection Theory

A framework describing how individuals differentiate between informative signals and noise in the environment.

Cognitive Dissonance Theory

A theory suggesting that we experience discomfort (dissonance) when our thoughts, beliefs, or behaviors are inconsistent with each other, leading to a change in one to reduce the dissonance.

Opponent-Process Theory

A psychological and neurological model that describes how opposing emotions balance out over time, influencing feelings and behaviors.

Depth-Of-Processing Theory

This theory posits that the depth (shallow to deep) of mental processing affects long-term memory retention; deeper levels of analysis produce more durable memory traces.