Insurance Companies Generate Profits by Collecting from a Range of Clients

question 38

True/False

Insurance companies generate profits by collecting from a range of clients' insurance premiums that are then pooled and used to pay claims on these policies.

Distinguish between bilateral and unilateral contracts.

Identify the enforceability of promises and modifications in preexisting contracts.

Analyze the legal effect of an illusory promise and gratuitous promises in contract law.

Explain the importance of legal detriment and legal benefit in the context of enforceable contracts.

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Definitions:

Implicit Association Test

A psychological test designed to detect the strength of a person's subconscious association between mental concepts (e.g., black or white with good or bad).

Racial Prejudices

Preconceived opinions or judgments about people based on their race, often leading to discrimination or negative attitudes without basis in fact or experience.

Pleasant Words

Words that evoke positive emotions or sentiments, often leading to a favorable reaction from the listener or reader.

Fundamental Attribution Error

A cognitive bias wherein people tend to attribute others’ behaviors to their character or personality, while underestimating external factors.