How Does an Insurance Contract Differ from an Ordinary Business

question 48

Multiple Choice

How does an insurance contract differ from an ordinary business contract?

• A)There is uncertainty that could result in either a gain or a loss.
• B)Both parties believe that the contractual price and the value of the contractual goods are equivalent.
• C)The insured will receive a sum of money on the occurrence of an event which must occur at some time,although the time of the occurrence is uncertain.
• D)One party knows that they are paying a price far less than the value provided by the other party and that the other party will only have to perform if certain conditions are met.

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Definitions:

Daily Log

A personal record kept on a daily basis detailing activities, observations, or measurements, which can be useful for tracking progress or identifying trends over time.

Daily Log

A record kept every day to track activities, observations, or progress towards goals, often used for personal or professional purposes.

Disbursements Journal

A financial record used to document cash payments or cash outflows from a business.

Computer-Mediated Communication

The exchange of messages between individuals through the use of digital devices and platforms.