An Important Distinction Between Valid Insurance Contracts and Wagering Contracts

question 47

Multiple Choice

An important distinction between valid insurance contracts and wagering contracts is that:

• A) insurance contracts create a new risk that did not previously exist, while wagering contracts don't.
• B) wagering contracts are not contrary to public policy, while insurance contracts are.
• C) insurance contracts transfer existing risks, while wagering contracts create new ones.
• D) unlike insurance contracts, wagering contracts are indemnity contracts.

---

Definitions:

Synapses

The junctions through which neurons signal to each other or to non-neuronal cells such as those in muscles or glands.

Puberty

The period of life when a person's sexual and physical characteristics mature due to hormonal changes, marking the capability of reproduction.

Early Adulthood

A developmental phase typically ranging from the late teens through the twenties, characterized by exploration, establishing independence, and building foundations in career and relationships.

Synaptic Pruning

The natural and necessary process of shedding excess neurons and synapses during brain development to increase the efficiency of neuronal transmissions.