What Is the Practical Effect of an Insurance Contract Being

question 53

Multiple Choice

What is the practical effect of an insurance contract being a contract of adhesion?

• A)The insurer can refuse to pay claims if the insured has not complied with all policy provisions.
• B)The insured can assign the policy only with the insurer's consent.
• C)The insurer can sue the insured for failure to pay any premiums.
• D)The policy is interpreted in the insured's favor if the policy contains any ambiguities or uncertainties.

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Definitions:

Sweater Producers

Entities or individuals involved in the manufacturing or creation of sweaters.

Normal Good

A normal good is a type of good for which demand increases as the income of individuals increases, holding all else constant.

FDA

The Food and Drug Administration, a federal agency of the United States responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices, cosmetics, animal foods & feed and veterinary products.

Price of Pretzels

The amount of money required to purchase a specific quantity of pretzels, influenced by factors such as production costs and market demand.