Explain How an Insurance Contract Avoids Being Void as a Wager

question 3

Essay

Explain how an insurance contract avoids being void as a wager.

---

Definitions:

False Negative

A test result which incorrectly indicates that a particular condition or attribute is absent.

Contrast Errors

In performance assessment, these are errors made when comparing one individual's performance too closely against others, rather than against objective criteria, leading to exaggerated differences.

Halo Errors

Halo errors occur in performance appraisal when the evaluator's overall impression of an employee, either positive or negative, influences judgments about specific performance traits.

360-degree Appraisal

A comprehensive performance review process involving feedback from a wide range of sources including supervisors, peers, subordinates, and sometimes clients to provide a holistic view of an employee's performance.