Which of the Following Insurance Contracts Is Enforceable

question 17

Multiple Choice

Which of the following insurance contracts is enforceable?

• A) An insurance policy taken out on a minor by an adult
• B) A life insurance contract in which the insured misrepresents his or her health or age
• C) An insurance contract where only one party to a contract has the capacity to contract
• D) A contract whose warranty is breached by the insured

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Definitions:

Equilibrium Price

The price at which the quantity demanded of a good equals the quantity supplied.

Quantity Demanded

Represents the total amount of a good or service that consumers are willing and able to purchase at a given price over a specific period of time.

Shortage Occurs

A market condition where the demand for a product exceeds its supply at a given price, leading to a situation where not all consumer demand can be met.

Motorcycle Producers

Companies or entities that manufacture motorcycles, focusing on aspects such as design, production, and marketing.