What Is It That Distinguishes an Insurance Contract from an Ordinary

question 35

Multiple Choice

What is it that distinguishes an insurance contract 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:

Instrumental Aggression

A type of aggression aimed at achieving a goal, such as obtaining a desired object or status, rather than merely causing harm for its own sake.

Real-life Example

An instance or occurrence from everyday life used to illustrate or explain a concept, phenomenon, or problem.

Individualistic Culture

A culture that emphasizes the rights and freedoms of the individual over the collective.

Collectivistic Culture

A culture that prioritizes the group over individual goals and values interdependence and conformity.