Insurance Policies Are Contracts of Adhesion

question 34

Multiple Choice

Insurance policies are contracts of adhesion.Which of the following statements best explains this phrase?

• A)Insurers take full responsibility of the information provided by the insureds during the formation of the contract.
• B)In case of a dispute, the court will read the contract as an insured would, and give decisions based on what the insured would understand after reading the contract.
• C)Insureds have no input in the design of a policy's terms.
• D)The insurer cannot void a contract, on the grounds of misrepresentation, after two years, even if it was a major fraud.
• E)After the insurance policy is in force, it cannot be cancelled or terminated until the contract period expires.

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Definitions:

Multiple Baselines

A research design used in behavioral analysis that involves comparing changes in behavior across different settings, times, or subjects.

Artificial Consequences

These are outcomes or sanctions that are deliberately created or imposed to modify behavior, rather than naturally occurring as a result of actions.

Naturally Occurring

An event, substance, or situation that exists or happens without human intervention.

Problem-solving Process

A systematic approach to addressing and finding solutions for complex problems, involving identifying the problem, generating alternatives, and implementing solutions.