Contracts of Insurance Are Enforceable Because

question 60

Multiple Choice

Contracts of insurance are enforceable because

• A) they are in writing and of a standard form.
• B) they are contracts of indemnity and are therefore enforceable.
• C) the insured has an insurable interest in that he will suffer some pecuniary detriment from the loss or destruction of the property.
• D) they are always under seal and therefore cannot be either illegal or void.
• E) they are in the nature of wagering and such contracts are enforceable.

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Definitions:

Antifraud Provisions

Legal rules and regulations designed to prevent deceit, misrepresentation, and other fraudulent actions in transactions.

Registered Securities

Financial instruments, such as stocks and bonds, that are recorded in the official records of the issuing company, detailing who owns them.

Registration of Securities

The process of filing the necessary documents with the Securities and Exchange Commission before securities can be offered for sale to the public.

Financial Soundness

An indication that an entity is stable, solvent, and has the capability to meet its financial obligations.